PepsiCo (NASDAQ: PEP) shares have weakened more than 10% since the beginning of January 2021, and the current share price stands around $133. Bank of America remains bullish on Pepsi, and the company could benefit in a post COVID19 environment.
Fundamental analysis: Pepsi reported that it expects a further increase in revenues
PepsiCo is American multinational food, snack, and beverage corporation that distributes its products in more than 200 countries. According to analysts, PepsiCo has more room to grow than Coca-Cola, and shares of this company represent a better opportunity for investors.
Bank of America assigned a buy rating on Pepsi with a $155 price objective on expectations that the company could expand its market share even more in the upcoming years.
“In our view, PEP enters FY21 from a strong position and is well equipped to outperform in a post COVID19 environment given expanded global geographic footprint (recent acquisitions in South Africa and China) and pursued M&A to fill gaps within the portfolio (Rockstar for energy & BFY Brands for premium snacks),” Bank of America reported.
PepsiCo reported Q4 results in February; total revenue has increased by 8.8% Y/Y to $22.46B while Q4 NON-GAAP EPS was $1.47 (beats by $0.01). Pepsi reported that it expects a further increase in revenues for the 2021 fiscal year, while the EPS growth should be consistent with long-term objectives.
Cowen has also raised its price target to $162 on PepsiCo after the Q4 earnings report as it sees Pepsi well-positioned for success in 2021 and, more importantly, beyond. It is also important to mention that the board of directors announced plans to increase the annualized dividend by 5%, starting with the June 2021 dividend payment.
PepsiCo shares
