Street View: Pepsi's growth formula still needs a fix in US
BUZZ-Street View: Pepsi's growth formula still needs a fix in US ** Snacks and soda giant PepsiCo PEP.O warned on Thursday growth and margin recovery in its key North American market was taking longer than planned and said it would pursue additional cost cuts to offset sluggish demand for its snacks and beverages
** 25 analysts rate stock "hold" on average; median PT is $145 - data compiled by LSEG
A THIRST FOR ANSWERS
** J.P.Morgan ("neutral," PT: $137) says co's international markets remain strong, but North American demand for snacks and beverages stays weak, with limited signs of near-term improvement
** Deutsche Bank ("hold," PT: $132) says PepsiCo Beverages North America (PBNA) remains a competitive laggard with weak margins, and while the co plans better brand investment and execution, the path to sustained improvement remains unclear
** Piper Sandler ("overweight," PT: $140) says co faces weak U.S. demand and cost pressures, while new protein and hydration products may support growth, though growth remains unproven
** RBC Capital Markets ("sector perform," PT: $150) says co's North America beverages business remains a key overhang, while refranchising could help improve long-term growth
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))
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