PepsiCo (PEP) Faces Mixed Q4 Earnings and Projects Future Challenges

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3 days ago
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  • PepsiCo's Q4 report reveals a 1.2% organic revenue growth, but a 10% drop in operating profit.
  • The company's FY25 outlook includes low-single-digit organic revenue growth amidst rising supply chain costs.
  • Analysts forecast a potential 12.71% upside with an average price target of $160.34.

Despite an impressive 1.2% growth in organic revenue, PepsiCo Inc (NASDAQ: PEP) recently experienced a dip in its share prices following a mixed Q4 financial report. A notable concern was the 10% decrease in operating profit, largely attributed to hurdles within its North American and Latin American sectors. Looking to the future, the company projects a modest low-single-digit organic revenue increase for fiscal year 2025, as it navigates rising supply chain expenses.

Analyst Projections for PepsiCo

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According to projections by 21 analysts, the average one-year price target for PepsiCo Inc (PEP, Financial) stands at $160.34. This estimate spans a high of $175.00 and a low of $124.00, implying a potential upside of 12.71% from the current share price of $142.26. For more comprehensive estimate data, visit the PepsiCo Inc (PEP) Forecast page.

Brokerage Recommendations

The consensus among 24 brokerage firms classifies PepsiCo Inc's (PEP, Financial) stock with an average recommendation of 2.8, translating to a "Hold" status. This rating system ranges from 1 to 5, where 1 suggests a Strong Buy, and 5 indicates a Sell.

Evaluating PepsiCo's GF Value

GuruFocus predicts that the GF Value for PepsiCo Inc (PEP, Financial) will reach $185.60 within a year, projecting a substantial upside of 30.47% from the current price of $142.26. The GF Value is GuruFocus' assessment of the stock's fair trading value, derived from historical trading multiples, prior business growth, and future business performance estimates. Additional detailed analysis can be accessed on the PepsiCo Inc (PEP) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.