) to buy from attractive.
Analyst Skip Carpenter says the recent weakness in the stock offers a compelling entry point. He notes that year to date, PEP shares are up only 3% vs. 19% for Coca-Cola (KO
) and 12% for Anheuser Busch (BUD
) He attributes the recent weakness to some rotation away from defensive shares in the face of growing evidence that the U.S. economy is rebounding. He thinks that while a vast majority of consumer non-cyclical stocks will have a challenging time outperforming the broader market indices during a recovery, PEP will remain a solid standout given its superior growth rates vs. comparable non-cyclicals.
Carpenter sees EPS of $1.94 in 2002 and $2.19 in 2003. He has a $60 price target.