Bank of America Securities analyst Bryan Spillane has reiterated their neutral stance on PEP stock, giving a Hold rating yesterday.
Bryan Spillane has given his Hold rating due to a combination of factors impacting PepsiCo’s financial outlook. The company’s first-quarter results aligned closely with expectations, but the management’s updated 2025 outlook now includes a negative impact on earnings per share (EPS) due to tariffs and macroeconomic challenges. These factors have led to a cautious adjustment in guidance, particularly as the U.S. savory snacks segment showed weaker-than-anticipated volume growth.
Spillane notes that while international markets are performing better and contributing more to the topline, the North American beverage segment is facing challenges. The expected decline in second-quarter EPS and the pressure from operating deleverage and increased interest expenses are influencing the overall financial projections. As a result, the price objective has been adjusted to $150, reflecting a stable price-to-earnings ratio based on revised lower earnings estimates, leading to the reiteration of a Neutral rating.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $140.00 price target.