Barron's has an interesting article on Pepsi by By Jacqueline Doherty. Here are the highlights. At Pepsi, the Glass Is Half Full

Investors have turned their backs this year on consumer-staples stocks, while chasing after companies that promise faster growth. In PepsiCo's case, they've had added reason to look elsewhere, given declining revenue and profits in the company's North American beverage division -- home of Pepsi products, Gatorade sports drinks, Tropicana juices, Aquafina water and other familiar brands.

Pepsi has suffered as cash-strapped consumers have traded down to private-label products -- or quenched their thirst at the kitchen sink.

CEO Indra Nooyi's recent statement that Pepsi is targeting 11% to 13% growth next year in earnings per share, excluding the impact of currency translation, and assuming the bottling deals close on schedule, early in 2010.

"We see a path for double-digit earnings growth over the next three years," says Bill Pecoriello, CEO of ConsumerEdge Research, who has an Outperform rating and a 12-month price target of 72 on Pepsi's shares.

Mario Gabelli, chairman and CEO of Gamco Investors, which manages mutual funds, is even more optimistic, noting that in the next few years, "the stock [could] trade 50% to 60% higher, which, with the dividend, gives you a pretty good return."

Gabelli, whose funds own Pepsi shares, bases his analysis on what he thinks the company's parts could be worth in private-market transactions. Pepsi pays a dividend of $1.80 a share, and yields 2.8%.

As Pecoriello and other Pepsi fans see it, the company has many levers it can use to boost revenue and meet its earnings goals. Even if just a few of them work, PepsiCo's shares soon could be bubbling higher.

Disclosure: The Div Guy owns share of PEP at the time of this post.