Shares rose tk% to about $ after the firm upgraded the pop maker to a buy-equivalent from a hold-equivalent, bumping its price target to $151 from $138. That compares the average price target of $151 and the Street-high of $161.
“We see the company as one of the few with not just clear visibility into achieving its algorithm in 2021 but also a viable path to accelerating top-line and profit delivery longer-term, providing a multi-year stock appreciation story,” Seeking Alpha quoted Barclays as saying.
For the longer term, Barclays notes that while the Pepsico Beverage North America business has historically been viewed as a critical driver of its ability to grow topline above the 4% range, the firm now sees an alternate path to achieving this goal.
Last month, the company forecast a mid-single digit increase in organic revenue and a high-single digit increase in core constant currency EPS.