Strategic Finance

PepsiCo Inc gets HSBC backing on the markets

 Print E-mail
Strategic Finance
Written by Paul Williams   
Tuesday, 18 May 2010

HSBC and Goldman Sachs upgrade their target share price on PepsiCo.

 

PepsiCo Inc (NYSE:PEP) has received broker upgrades from two big name investment banks - Goldman Sachs Group and HSBC Holdings.

HSBC have upped their share price target to 76, that is 13.86% higher than the stock previous close of 66.75.

And in an uncanny show of solidarity Goldman Sachs have also upped their share price target to 76.

Goldman Sachs upgraded PepsiCo Inc to conviction buy from buy Wednesday, saying that it expects the company to report a high-teens percentage growth in earnings per share in the second half of the year.

Goldman goes on to say that the company is positioned to deliver a "best-in-class" compound annual growth rate of earnings over the next few years.

There are also continued signs that US beverage demand is firming up and improving investor sentiment toward the broad beverage sector.

PepsiCo was up 1.4% to $67.50 in light recent premarket action.

 

Last results


In April PepsiCo earned $1.43 billion, or 89 cents a share, on the period, up from $1.14 billion or 72 cents a share in the same quarter of 2009. Sales rose 13% to $9.37 billion from $8.26 billion.

The average estimate of analysts polled by FactSet Research had been for the company to earn 76 cents a share on revenue of $9.35 billion.

Volumes were up slightly as big gains overseas, with the exception of Europe, offset a continuing slump in North American beverages.

"Our macrosnacks business gained share in key markets, and we posted solid performance in beverages supported by the benefits of the acquisition of our two largest bottlers, growth in developing markets and improving top-line trends in North America," said Chief Executive Indra Nooyi in the earnings report.


 
 
Share this article:
Digg It! Digg it!   Post to del.icio.us del.icio.us   Seed in Newsvine Newsvine   Post to reddit Reddit   Facebook  Stumble It! Stumble It!  

Subscribe to our weekly newsletter for top jobs, news, blogs and more

Get the latest senior finance job roles, news, blogs, features, industry moves and opinion delivered directly to your inbox every week. Sign up here .