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Investing.com – PepsiCo (NASDAQ:PEP) rose nearly 1% Wednesday, pushed higher by an upgrade from UBS analyst Sean King.
Rating the stock a buy, King raised his price target to $165. That is 14% higher than his previous estimate and 12% higher than the current price.
“We believe PepsiCo is only at the mid-point of an investment cycle that will yield a sustainable improvement to top and bottom line growth,” King wrote in his note.
Investments in beverage margins and global snacking scale support our above street outlook for 2021-23 estimated sales growth of +5.7% and EPS growth of +10.0%, the UBS analyst wrote.
At its April 15 earnings announcement, the company said it had “greater confidence in delivering on our financial guidance for the full year.”
The company has provided for a mid-single-digit increase in organic revenue and a high-single-digit rise in core constant currency EPS for 2021.
Organic revenue growth in 2020 was 4.3% while core constant currency EPS grew 2%.
