- Bank of America downgrades PepsiCo to Neutral, citing growth challenges in Frito-Lay's North America division.
- Average analyst price target suggests a potential 10.46% upside for PepsiCo shares.
- GuruFocus GF Value estimates indicate a potential 26.44% upside, reflecting potential undervaluation.
Bank of America recently adjusted its outlook for PepsiCo (PEP, Financial), moving the rating from Buy to Neutral. This change is attributed to the expected difficulty PepsiCo might face in matching the sales and profit growth of its peers. The financial institution has also lowered its FY26 EPS projection to $8.70 and set a new price target at $155. Analysts are particularly concerned about the anticipated slow growth in the Frito-Lay North America division.
Wall Street Analysts' Predictions
According to the latest price target data from 21 analysts, the average target for PepsiCo Inc (PEP, Financial) stands at $162.10. This estimate ranges from a high of $185.00 to a low of $124.00, suggesting a potential upside of 10.46% from its current trading price of $146.75. Investors can explore more detailed estimate data on the PepsiCo Inc (PEP) Forecast page.
When examining consensus recommendations from 24 brokerage firms, PepsiCo Inc (PEP, Financial) currently carries an average rating of 2.7, categorized as "Hold." This scale ranges from 1, indicating a Strong Buy, to 5, marking a Sell. The majority consensus suggests a cautious approach to investments in PepsiCo at this time.
Furthermore, the GF Value metric from GuruFocus estimates a one-year forecasted value for PepsiCo Inc (PEP, Financial) at $185.55. This implies a more optimistic upside of 26.44% relative to the current share price of $146.75. The GF Value is a comprehensive measure that factors in historical trading multiples, past business growth, and anticipated future performance. Further insights can be accessed on the PepsiCo Inc (PEP) Summary page.
