In a report released today, Filippo Falorni from Citi maintained a Buy rating on PepsiCo, with a price target of $168.00.
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Filippo Falorni has given his Buy rating due to a combination of factors that highlight potential growth and value opportunities for PepsiCo. One significant factor is the recent investment by Elliott Investment Management, which acquired a substantial stake in the company. Elliott’s involvement is seen as a catalyst for strategic changes that could address PepsiCo’s current challenges, particularly in its North American operations.
Falorni notes that Elliott’s proposed initiatives, such as restructuring the PBNA segment and realigning the PFNA asset base, could enhance operational efficiency and profitability. Additionally, there is potential for value creation through divestitures of underperforming assets, which could allow PepsiCo to focus on its core brands. Despite some short-term risks, such as possible market share shifts and earnings dilution, the long-term prospects for improvement in PepsiCo’s valuation are promising if these strategic changes are effectively implemented.
According to TipRanks, Falorni is an analyst with an average return of -1.8% and a 51.97% success rate. Falorni covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Constellation Brands, and Keurig Dr Pepper.
In another report released on August 26, Piper Sandler also maintained a Buy rating on the stock with a $160.00 price target.