PepsiCo (PEP) is unlikely to post major surprises in its Q3 financial report, UBS Securities said.

The company is scheduled to report its Q3 financial results on Oct. 8.

UBS said in a Thursday note that it expects PepsiCo Q3 adjusted earnings per share of $2.28, below the Street estimate of $2.30.

As a base case, analysts expect the company to reiterate annual guidance across the board but point toward the low end.

The company faces a tough near-term path, but downside appears largely priced into the stock's current valuation, UBS said.

PepsiCo's organic growth is in line with peers, and while its North America progress is far slower than expected, this is more than priced into its current valuation.

UBS cut its price target to $145 from $159, with a buy rating.

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