A PepsiCo bull is getting retired up of the beverage and snack giant’s second-quarter study Tuesday: She’s making a bargain proposal now.
On Friday, Cowen & Co. expert Vivien Azer reiterated an Outperform standing and $165 terms people connected PepsiCo (ticker: PEP). She’s modeling for the institution to gain $1.51 a share, 2 cents beneath the mean expert estimate—although she notes that fig could beryllium conservative—and integrated gross maturation of 8.6%.
Azer expects Frito Lay North America’s integrated gross maturation to beryllium 4%, and notes the part is holding up good contempt hard year-over-year comparisons erstwhile much consumers were snacking astatine location during Covid-19 restrictions.
The expert believes Pepsi’s North American beverage business, by contrast, volition spot its easiest examination of the twelvemonth successful the 2nd quarter, and points retired that caller information shows it whitethorn beryllium pulling up of Coca-Cola (KO) successful presumption of income growth.
Also, wide Covid-related costs should beryllium down due to the fact that of a beardown vaccine rollout successful the U.S., which accounts for astir two-thirds of Pepsi’s profits. Still, Azer wrote, the lingering pandemic menace successful Latin America could beryllium a headwind successful that region.
Other analysts person been optimistic astir Pepsi’s earnings arsenic well. A small implicit fractional of the 23 tracked by FactSet complaint it astatine Buy oregon the equivalent, with 43% connected the sidelines and 1 bearish call. The mean expert terms people is $156.02.
Consensus calls for Pepsi to gain $1.53 a stock connected gross of $17.97 billion. That’s up from EPS of $1.21 and gross of $14.82 cardinal successful the previous quarter, reported successful April. Pepsi’s EPS hasn’t missed quarterly expectations successful the past 5 years.
Pepsi volition big a league telephone astatine 8:15 a.m. Eastern clip Tuesday.