PepsiCo (PEP) Stock Gains as Deutsche Bank Raises Price Target
NEW YORK (TheStreet) -- Shares of PepsiCo (PEP) - Get Report are up 0.38% to $107.90 in premarket trade as analysts at Deutsche Bank raised their price target on the stock to $120 from $115.
The firm also maintained its "buy" rating on shares of the Purchase, NY-based beverage company.
"With scared and yield-starved investors flocking to staples, telecom, utilities and bonds, PepsiCo has a unique balance of decent organic growth, clear margin and earnings flexibility and reasonable valuation," Deutsche Bank said in an analyst note released this morning.
The firm added that as long as rates are low and macro is uncertain, "PEP is as good a place as any to hide."
The estimate raise follows the company's earnings report for the 2016 second quarter before market open yesterday. PepsiCo reported adjusted earnings of $1.35 per share on revenue of $15.4 billion, beating analysts expectations of $1.29 per share on revenue of $15.36 billion.
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Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: PE
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.