[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5302 followers Created: 2025-07-20 02:16:28 UTC $PEP Attached is page X of a 9-page RBC Capital Markets analyst report on PEP issued yesterday entitled: "EPS Aftermath - Better than Feared; More Wood to Chop to Return to Algo" RBC Capital Markets has a 'Sector Perform' rating on PEP with a $XXX price target. RBC Capital Markets' 'View' regarding PEP in the report includes the following: "Against a backdrop of subdued expectations, PEP delivered a better than feared quarter and was able to raise bottom line guidance due to over delivery in the quarter and easing FX headwinds. While results were modestly better than expected, PEP still has more work to do to get domestic topline trends improving and back where they need to be for a return to algorithmic growth, and until then productivity is the main driver of EPS growth. We maintain our PT of $XXX and reiterate our Sector Perform rating. Adjustments to estimates: We are adjusting our FY’25 organic growth estimate to +2% (from +1.8%) reflecting the quarter and modest segment level changes. Our FY’25 EPS comes up to $XXXX due to the over delivery in the quarter and margin phasing changes, lowering Q3 EPS to -LSD% and Q4 up DD due to productivity timing. We also adjust FY’26 growth expectations but don’t have PEP returning to their LT algo as we are still looking for better domestic performance. We maintain our PT of $XXX and reiterate our Sector Perform rating. -- Valuation: Our $XXX DCF-based price target assumes a top-line CAGR of ~3.2% and peak margins of ~18%. We assume a ~1.0% terminal growth rate and a WACC of 6.6%. Our price target supports a Sector Perform rating. -- Risks to rating and price target: Risks to our price target and rating include but are not limited to: X. Manufacturing/logistics disruption. In a situation like COVID-19, PEP runs the risk of significant manufacturing/logistics disruption that could result in not being able to keep up with increased consumer demand and ultimately lead to share losses down the road. X. Recessionary scenario. While consumer staples tend to fare better than other sectors in an economic downturn, PEP is not completely insulated. In the 2008–09 recession, PEP’s NTM P/E contracted almost XX% from a pre-crash average of 20x to a trough of 12x. X. Competition. The level of competition from both new market entrants and packaged food peers leaning into snacks as a source of growth could either help or hurt PEP. X. FX/commodity cost volatility. Significant swings in FX or input costs could pose upside/downside risk to earnings. X. Health and wellness headline risk. Issues facing CSDs (Health and Wellness) in the US become global." (Page X is not available here as X does not allow me to post pages from reports on this platform) XXX engagements  **Related Topics** [algo](/topic/algo) [chop](/topic/chop) [eps](/topic/eps) [pep](/topic/pep) [mergers and acquisitions](/topic/mergers-and-acquisitions) [$pep](/topic/$pep) [stocks consumer defensive](/topic/stocks-consumer-defensive) [Post Link](https://x.com/CorleoneDon77/status/1946756059898819016)
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DonCorleone77 @CorleoneDon77 on x 5302 followers
Created: 2025-07-20 02:16:28 UTC
$PEP
Attached is page X of a 9-page RBC Capital Markets analyst report on PEP issued yesterday entitled:
"EPS Aftermath - Better than Feared; More Wood to Chop to Return to Algo"
RBC Capital Markets has a 'Sector Perform' rating on PEP with a $XXX price target.
RBC Capital Markets' 'View' regarding PEP in the report includes the following:
"Against a backdrop of subdued expectations, PEP delivered a better than feared quarter and was able to raise bottom line guidance due to over delivery in the quarter and easing FX headwinds.
While results were modestly better than expected, PEP still has more work to do to get domestic topline trends improving and back where they need to be for a return to algorithmic growth, and until then productivity is the main driver of EPS growth. We maintain our PT of $XXX and reiterate our Sector Perform rating.
Adjustments to estimates:
We are adjusting our FY’25 organic growth estimate to +2% (from +1.8%) reflecting the quarter and modest segment level changes. Our FY’25 EPS comes up to $XXXX due to the over delivery in the quarter and margin phasing changes, lowering Q3 EPS to -LSD% and Q4 up DD due to productivity timing.
We also adjust FY’26 growth expectations but don’t have PEP returning to their LT algo as we are still looking for better domestic performance. We maintain our PT of $XXX and reiterate our Sector Perform rating.
-- Valuation:
Our $XXX DCF-based price target assumes a top-line CAGR of ~3.2% and peak margins of ~18%. We assume a ~1.0% terminal growth rate and a WACC of 6.6%. Our price target supports a Sector Perform rating.
-- Risks to rating and price target:
Risks to our price target and rating include but are not limited to:
X. Manufacturing/logistics disruption. In a situation like COVID-19, PEP runs the risk of significant manufacturing/logistics disruption that could result in not being able to keep up with increased consumer demand and ultimately lead to share losses down the road.
X. Recessionary scenario. While consumer staples tend to fare better than other sectors in an economic downturn, PEP is not completely insulated. In the 2008–09 recession, PEP’s NTM P/E contracted almost XX% from a pre-crash average of 20x to a trough of 12x.
X. Competition. The level of competition from both new market entrants and packaged food peers leaning into snacks as a source of growth could either help or hurt PEP.
X. FX/commodity cost volatility. Significant swings in FX or input costs could pose upside/downside risk to earnings.
X. Health and wellness headline risk. Issues facing CSDs (Health and Wellness) in the US become global."
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
Related Topics algo chop eps pep mergers and acquisitions $pep stocks consumer defensive