PepsiCo’s (PEP) stock fell 0.5% on July 11, the day the company announced its fiscal 2Q17 results. The decline came despite the fact that PepsiCo exceeded analysts’ revenue and earnings estimates for fiscal 2Q17. We have discussed the company’s fiscal 2Q17 results in the previous parts of this series.
As of July 12, PepsiCo’s stock was up 9.7% on a YTD (year-to-date) basis. The stock prices of nonalcoholic beverage peers Coca-Cola (KO), Dr Pepper Snapple (DPS), and Monster Beverage (MNST) have risen 7.4%, -1.5%, and 13.7%, respectively, as of July 12, on a YTD basis.
PepsiCo and Monster Beverage have outperformed the S&P 500 Index, which has risen 9.1% since the start of 2017. These stocks have also performed better than the Consumer Staples Select Sector SPDR Fund (XLP), which has risen 5% on a YTD basis.
As of July 12, 15 out of 23 analysts covering PepsiCo’s stock have a “buy” rating. Eight analysts have a “hold” rating. There haven’t been any changes in PepsiCo’s ratings since its fiscal 2Q17 results.
Price target revisions
As of July 12, the average 12-month price target for PepsiCo’s stock is $124.38. This price target indicates an upside potential of 8.4% compared to the stock’s closing price of $114.77 on July 12.
On July 12, Credit Suisse raised its price target for PepsiCo to $126 from $124. Jefferies raised its price target for PepsiCo’s stock to $133 from $130. Susquehanna cut its price target to $135 from $137.
We’ll discuss PepsiCo’s valuation in the concluding part of this series.