PepsiCo’s (PEP) current earnings per share guidance of at least $8.15 for 2024 “has room for upside” as commodity costs normalize and productivity increases, Wedbush said in a note Monday.
The firm said it increased its EPS forecast for the food and beverage company to $8.15 from $8.13 and cut its reported revenue estimate to $94.45 billion from $96.40 billion for 2024 to take into account PepsiCo’s updated outlook.
For 2025, the firm expects the company to have EPS of $8.87 on revenue of $99.03 billion.
“The company should have a path to deliver on their long-term targets coming off three consecutive years of robust top and bottom line growth,” Wedbush said.
Wedbush maintained its outperform rating and $195 price target on PepsiCo stock.