Key Highlights:
- PepsiCo's revenue exceeds projections, but EPS falls short.
- Analysts suggest a "Hold" status with a potential upside in stock value.
- Projected 3.2% annual revenue growth over the next three years.
PepsiCo Inc. (NASDAQ: PEP) has delivered a mixed performance in its recent financial results. While the beverage giant reported a revenue increase that surpassed market expectations by 1.1%, its earnings per share (EPS) fell short by 11%. Despite this earnings miss, PepsiCo remains optimistic about its growth prospects, forecasting a 3.2% annual revenue increase over the next three years. However, this projection is slightly below the broader U.S. Beverage industry's anticipated growth of 4.3%.
Wall Street Analysts Forecast
According to the consensus from 21 financial analysts, PepsiCo Inc (PEP, Financial) has a one-year average price target of $154.01. Price expectations range from a high of $169.11 to a low of $124.00, suggesting a potential upside of 15.46% from its current trading price of $133.38. For investors seeking further insights, additional estimates are accessible on the PepsiCo Inc (PEP) Forecast page.
Market sentiment around PepsiCo remains cautious, as reflected in the "Hold" average brokerage recommendation from 24 firms. On a scale where 1 indicates a "Strong Buy" and 5 a "Sell," PepsiCo's score stands at 2.8, aligning with a neutral position.
In terms of valuation, GuruFocus' estimates suggest a GF Value for PepsiCo Inc (PEP, Financial) at $180.58 within the next year, which implies a substantial upside of 35.39% from its current market price of $133.38. The GF Value metric by GuruFocus evaluates what the stock should be worth based on historical multiples, past growth rates, and future performance projections. Further valuation details can be explored on the PepsiCo Inc (PEP) Summary page.
