07:20 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month target of $200, based on a 2025 P/E of 22.2x, a discount to its 5-year mean forward P/E of 24.5x. We raise our adjusted EPS estimates by $0.10 to $8.25 for 2024 and by $0.10 to $9.00 for 2025. PEP posts Q1 adjusted EPS of $1.61 vs. $1.50 (+7%), nine cents ahead of consensus. The beat was driven by a stronger-than-expected top line, as net revenue rose 2.2% to $18.25B ($150M above consensus) driven by higher prices, as volume fell 0.5% for Convenient Foods and was flat for Beverages. Notably, volumes were higher across both product types across the Europe, Asia, and Africa markets, helping offset weakness in North America. Gross margin contracted 40 bps to 54.8% (60 bps below consensus). PEP maintained full year EPS guidance of at least $8.15, which compares to the $8.15 consensus, but we think the sizeable beat raises the likelihood of a guidance raise later this year, which should be a tailwind for the shares. We reiterate our Buy, viewing PEP as a blue-chip Consumer Staples name.