In a report released today, Andrea Faria Teixeira from J.P. Morgan upgraded PepsiCo to a Buy, with a price target of $164.00.
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Andrea Faria Teixeira has given her Buy rating due to a combination of factors that suggest PepsiCo is well-positioned for future growth. The company is expected to benefit from an accelerated agenda of innovation and marketing, supported by strong productivity savings. This strategic approach is anticipated to drive high single-digit total shareholder returns by 2026, making PepsiCo an attractive investment compared to its high-quality peers, especially given its current valuation discount.
Despite some market skepticism, particularly regarding the company’s ability to achieve its ambitious earnings growth targets, Teixeira sees potential in PepsiCo’s efforts to enhance shareholder value. The company’s investments in affordability and innovation, coupled with recent acquisitions, are expected to improve its organic top-line growth. Additionally, the anticipated improvement in U.S. snacking consumption trends and the incorporation of recent M&A activities into the organic base are seen as positive indicators for PepsiCo’s future performance.
According to TipRanks, Faria Teixeira is an analyst with an average return of -0.5% and a 46.92% success rate. Faria Teixeira covers the Consumer Defensive sector, focusing on stocks such as Coca-Cola, Celsius Holdings, and Church & Dwight.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $172.00 price target.