Morgan Stanley analyst Dara Mohsenian has maintained their neutral stance on PEP stock, giving a Hold rating yesterday.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Dara Mohsenian has given his Hold rating due to a combination of factors surrounding PepsiCo’s current market position and growth strategies. The recent presentation by PepsiCo’s executives emphasized their focus on driving incremental topline growth and productivity improvements. While these efforts are positive, the company faces challenges with complexity in execution and a slow base business growth due to weaker demand in the US snacks category and ongoing market share loss in beverages.
Mohsenian acknowledges the strategic initiatives PepsiCo is undertaking, such as refreshing iconic brands, advancing health-oriented product choices, and targeting new consumer cohorts. However, despite these efforts, the subdued organic sales growth, particularly in the US market, tempers the overall outlook. Therefore, a Hold rating is warranted as the company balances its strategic ambitions with the current market realities, making it less appealing compared to competitors like Coca-Cola, which is perceived to have stronger and more sustainable growth prospects.
According to TipRanks, Mohsenian is a 5-star analyst with an average return of 7.0% and a 61.66% success rate. Mohsenian covers the Consumer Defensive sector, focusing on stocks such as Coca-Cola, Colgate-Palmolive, and PepsiCo.
In another report released yesterday, J.P. Morgan also reiterated a Hold rating on the stock with a $158.00 price target.