Jefferies announced on Thursday that it had raised its price target for PepsiCo from $209 to $211, while reiterating its Buy recommendation on the stock.

In a research note, the analyst said he expected profit margins in the North American beverage business to reach an inflection point in the near future.

With the reshaping of the portfolio, an enlarged asset base, a slowdown in the pace of investment, stable costs and, above all, a focus on margins by the new management team, the division's margins should finally rebound", he predicts.

Jefferies thus anticipates a margin of 14% for the division by 2028, compared with 11% today.

More generally, the intermediary considers that there is much to like in Pepsi's case, whether in terms of its international activities, which it considers to have been shunned by the market, or the prospect of an imminent return to profitable growth for Frito-Lay, its chips division.

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