S&P Capital IQ Reiterates its BUY Rating on Pepsico, Target Price Reduced

October 13 00:00 2011

NEW YORK, October 13 (RainbowNewsLine.com) – Analyst Esther Kwon of S&P Capital IQ reiterates his BUY rating on the shares of PepsiCo (NYSE: PEP). Target price has been reduced from $71 to $70.

Analyst Esther Kwon, in a research note published yesterday, mentions that the company reported its Q3 EPS ahead of the estimates and the consensus driven by higher growth in net revenues backed by 33% growth in emerging markets. America’s beverage volumes experienced a drop in CSD but neutralized by gains in carbonated drinks. The 2011 EPS estimate is unchanged at $4.41 and target price is reduced from $71 to $70 to reflect the forward P/E. The analyst is encouraged by the company reiterating its guidance and comments about the acceptance of higher pricing particularly for single serve products.