Analyst Filippo Falorni of Citi maintained a Buy rating on PepsiCo (PEP – Research Report), reducing the price target to $160.00.
Filippo Falorni has given his Buy rating due to a combination of factors that highlight PepsiCo’s potential despite some current challenges. One of the key reasons is the company’s international business, which continues to show strong performance with significant growth in markets like Europe, India, and Brazil. This international strength is expected to contribute positively to the company’s overall topline growth, even as macroeconomic pressures affect some regions like China and Mexico.
Another factor influencing the Buy rating is PepsiCo’s valuation, which Falorni considers to be at a 10-year low and too depressed for a company with an expected organic sales growth of around 2%. Despite the lowered earnings guidance for 2025 due to tariff impacts and macroeconomic challenges, the company’s efforts to mitigate these through cost savings and adjustments in sourcing are seen as positive steps. Additionally, the performance of key brands in North America, such as Pepsi Zero Sugar and Gatorade, shows potential for recovery and improvement, which supports the optimistic outlook.
Falorni covers the Consumer Defensive sector, focusing on stocks such as Boston Beer, Constellation Brands, and Monster Beverage. According to TipRanks, Falorni has an average return of -1.8% and a 58.00% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $160.00 price target.