Analyst Robert Moskow from TD Cowen maintained a Hold rating on PepsiCo and keeping the price target at $155.00.
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Robert Moskow has given his Hold rating due to a combination of factors that reflect both optimism and caution. PepsiCo’s management has shown a strong commitment to reducing costs and driving growth, as evidenced by their frequent emphasis on urgency during their earnings call. However, the company’s recent organic growth of 1.3% fell short of expectations, and management did not provide specific future targets, which introduces uncertainty.
Furthermore, while the engagement with activist investor Elliott Investment is seen as constructive, the management’s assertion that most of Elliott’s suggestions are already part of their existing strategy may limit the potential for immediate change. PepsiCo’s plans to innovate and return to mid-single-digit sales growth by the latter half of 2026 are promising, but the path to achieving this, especially given recent declines in certain segments, remains fraught with challenges. As a result, Moskow maintains a Hold rating, balancing the potential for future growth with the current risks and uncertainties.
In another report released today, Barclays also maintained a Hold rating on the stock with a $140.00 price target.