JPMorgan analyst Andrea Teixeira has slightly increased her price target for PepsiCo's stock (PEP, Financial), raising it from $158 to $159. Despite this adjustment, the stock maintains a Neutral rating as the company approaches its first-quarter earnings announcement scheduled for April 24.
Current consumption patterns in the United States have shown signs of weakening, particularly in the snacking sector, while the beverage segment continues to display uninspiring performance. These ongoing trends have prompted cautious investor sentiment regarding the upcoming quarterly results.
Though PepsiCo's current stock valuation presents an appealing opportunity, the company faces potential challenges with the lack of a clear recovery trajectory in its snacking segment. In addition, external factors like the "Make America Healthy Again" initiative, associated with former President Trump, and GLP-1 related risks add to the uncertainty. Consequently, these elements contribute to the firm’s decision to refrain from a more positive outlook on the stock at this time.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for PepsiCo Inc (PEP, Financial) is $160.67 with a high estimate of $175.00 and a low estimate of $124.00. The average target implies an upside of 12.48% from the current price of $142.84. More detailed estimate data can be found on the PepsiCo Inc (PEP) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, PepsiCo Inc's (PEP, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PepsiCo Inc (PEP, Financial) in one year is $185.51, suggesting a upside of 29.87% from the current price of $142.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PepsiCo Inc (PEP) Summary page.
