Key Insights:
- PepsiCo's revenue surpasses forecasts, but Non-GAAP EPS slightly misses.
- Analysts' average price target suggests a potential upside of over 12%.
- GuruFocus estimates indicate a 30.47% upside potential based on GF Value.
PepsiCo Inc. (PEP, Financial) recently reported its first-quarter earnings, revealing a Non-GAAP EPS of $1.48, which came in slightly below Wall Street expectations. However, the company impressed with revenue figures, reaching $17.92 billion and surpassing forecasts. Looking ahead to 2025, PepsiCo anticipates steady organic revenue growth, an effective tax rate near 20%, and plans to return $8.6 billion to shareholders via dividends and buybacks.
Wall Street's Perspective on PepsiCo
According to projections from 21 analysts, the average one-year price target for PepsiCo Inc. (PEP, Financial) stands at $160.34. This estimate is flanked by a high of $175.00 and a low of $124.00. With PepsiCo's current stock price at $142.26, the average target indicates a potential upside of 12.71%. For more comprehensive estimates, refer to the PepsiCo Inc. (PEP) Forecast page.
Brokerage Recommendations
Analyst consensus, derived from 24 brokerage firms, positions PepsiCo Inc. (PEP, Financial) with an average brokerage recommendation of 2.8, denoting a "Hold" rating. This scale ranges from 1 (Strong Buy) to 5 (Sell), providing a clear perspective on analyst sentiment.
Evaluating Future Value with GuruFocus
From a valuation standpoint, GuruFocus estimates the GF Value of PepsiCo Inc. (PEP, Financial) to be $185.60 in one year, suggesting a significant upside of 30.47% from its current market valuation of $142.26. The GF Value reflects GuruFocus' assessment of what the stock should fairly trade for, derived from historical multiples, past business growth, and anticipated future performance. Investors can explore more in-depth analysis on the PepsiCo Inc. (PEP) Summary page.
