Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

PepsiCo cut at JPMorgan despite positive outlook: "more attractive options elsewhere"

Published 12/19/2023, 08:10 AM
Updated 12/19/2023, 08:13 AM
© Reuters.  PepsiCo (PEP) cut at JPMorgan despite positive outlook: "more attractive options elsewhere"

JPMorgan downgraded beverage giant PepsiCo (NASDAQ:PEP) to Neutral from Overweight, lowering its price target to $176 from $185 per share in a note Tuesday. The shift in stance comes despite JPMorgan acknowledging PepsiCo's "well-positioned" state and confidence in its 2024 outlook.

Analysts at JPMorgan said they "don't see anything fundamentally wrong" with PEP and continue to have confidence in the business and its ability to deliver on its 2024 outlook. However, they see limited potential for further upward revisions to earnings forecasts and believe more attractive investment opportunities exist elsewhere within the beverage sector.

Specifically, JPMorgan highlighted Coca-Cola and Keurig Dr Pepper, citing their "higher quality composition of top-line growth" in 2024 and the lack of the overhang associated with the PEP GLP-1 concerns.

The revised price target of $176 reflects a 20x price-to-earnings multiple applied to JPMorgan's CY2025 earnings per share estimate of $8.82. "We believe PEP’s current valuation already reflects the bull & bear debate," analysts at the investment bank stated.

Latest comments

They are reight to cut, what I know from my friends, sales are going down specially in Middle east and Asia
i know from a friend that know from a oncle from another friend that is correct !!!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.