PepsiCo (PEP – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Hold rating on the stock and has a $143.00 price target.
Robert Moskow has given his Hold rating due to a combination of factors impacting PepsiCo’s performance. The company reported a miss in first-quarter sales and adjusted its earnings per share guidance downward, primarily due to challenges faced by its Frito-Lay division and unquantified tariff costs. The management has acknowledged the need for a more significant price investment in Frito-Lay to address its value proposition issues, but this has yet to yield substantial results.
Despite some positive developments, such as the success of certain pricing strategies and international growth, the overall outlook remains cautious. The company is experiencing pressure from inflation and value-conscious consumer behavior, which has led to lowered sales and profit expectations for its North American operations. Moskow’s Hold rating reflects the belief that while there are signs of potential recovery, the necessary investments and strategic adjustments may take time to stabilize the company’s performance and return to profit growth.
According to TipRanks, Moskow is a 4-star analyst with an average return of 2.5% and a 50.57% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Vital Farms, and Kimberly Clark.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $140.00 price target.