NEW YORK (TheStreet) -- Goldman Sachs has added PepsiCo (PEP) - Get Report to its conviction-buy list ahead of the expected re-acceleration of earnings per share to the high-teens in the second half of 2010, compared with 5% to 6% in the first half of the year.
Goldman Sachs predicts that PepsiCo is poised to deliver a 13% to 14% earnings per share compound annual growth rate over the next few years; "best-in-class among large-cap staples," it said.
"In addition, PEP's investment in new product innovation and marketing could eventually drive improvement in market-share performance."
Goldman Sachs has a 12-month price target for PepsiCo of $76, or a 17% return potential, including the dividend, as the investor sentiment towards the broad beverage sector continues to firm up and amid ongoing signs of stronger U.S. beverage demand.
Goldman Sachs expects
Dr Pepper Snapple
management to confirm this trend.
stock is up 0.5% to $66.89 in Wednesday trading.
-- Reported by Andrea Tse in New York
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