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Susquehanna a dip buyer on PepsiCo

Published 02/12/2018, 11:08 AM
© Reuters.  Susquehanna a dip buyer on PepsiCo
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  • Susquehanna analyst Pablo Zuanic expects some short-term pressure on PepsiCo (PEP +0.5%) tomorrow following its Q4 earnings report and guidance update, largely due to the potential for an EPS miss ($1.23 Susquehanna est. vs. $1.31 consensus).
  • The earnings day dip could be an opportuniy to snap up PepsiCo shares on the cheap as Zuanic notes that they already trade at 21% discount to Coca-Cola on an "apples-to-apples, tax-adjusted fully inclusive EV/EBITDA methodology" basis.
  • M&A optionality is also still in play with PepsiCo, he adds.
  • Susquehanna's price target on PepsiCo is moved up to $140.
  • Now read: PepsiCo: Expecting A Good Quarter, Stock Looks De-Risked


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