Goldman Sachs reiterated a Buy rating and $208.00 price target on Pepsico (NASDAQ:PEP) ahead of Q2/23 earnings (scheduled on July 13), expecting a potential beat on both revenue and profit.
The analysts believe that Pepsico’s businesses, particularly FLNA, have strong underlying momentum, and consumer elasticities for PBNA remain resilient despite challenging macro conditions. As a result, the analysts raised the Q2 organic sales growth estimate to 11.1% and increased the EPS estimates by $0.07 to $1.98.
The analysts view Pepsico as a company that executes well, sustains growth through reinvestments, and is well-positioned for outsized growth in the global food and beverage industry, despite more modest industry growth due to fading inflation-led pricing.