Goldman Sachs Reports on PepsiCo (PEP)

In a report released earlier today, Goldman Sachs was bullish on PepsiCo PEP. Goldman writes, “We are adding PepsiCo (PEP) to the Americas' Conviction Buy List with a 12-month price target of $83, in conjunction with the removal of Mead Johnson from the Conviction Buy List. We see 23% total return potential in a year driven by 10% EPS growth, 3% dividend yield and a multiple re-rating closer to its historical norms. A turnaround in NA beverage volumes is progressing—PEP has higher exposure to faster growing non-soda categories at 40% of its overall US beverage sales. We believe as non-CSD growth continues to accelerate PEP's portfolio should again become an advantage.” Goldman has a Buy rating on PepsiCo and a price target of $83. PEP closed down on Friday at $69.27, slightly down from the price of $69.87 at open.