11:40 AM EDT, 03/17/2025 (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 $175, based on a 2026 P/E of 19.0x, a justified discount to PEP's five-year mean forward P/E of 23.8x. PEP announced the purchase of probiotic soda brand Poppi for $1.95B, including $300M of cash tax benefits, bringing the net purchase price to $1.65B. We adjust our EPS estimates by $0.10 to $8.60 for 2025 and by $0.20 to $9.20 for 2026, assuming a mid-year transaction close. The announcement doesn't come as a major surprise following reports that the deal was in the works in recent days. We think the purchase is typical of the acquisitions PEP has made in recent years, namely growing its beverage and snack portfolio in an earnings accretive manner (and offsetting secular declines in other products) by using balance sheet cash to acquire healthier and/or faster-growing brands, many of which are especially popular with younger consumers (Sabra and Siete Foods in 2024, Rockstar Energy in 2020, and SodaStream in 2018). We maintain Buy, finding PEP's risk/reward attractive.