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PepsiCo’s Modest Growth Prospects and Underwhelming Performance Justify Hold Rating

PepsiCo’s Modest Growth Prospects and Underwhelming Performance Justify Hold Rating

Christopher Carey, an analyst from Wells Fargo, maintained the Hold rating on PepsiCo (PEPResearch Report). The associated price target remains the same with $155.00.

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Christopher Carey has given his Hold rating due to a combination of factors that suggest PepsiCo’s current situation lacks a catalyst to drive significant stock appreciation. The company’s recent quarterly performance showed some underwhelming results, particularly with the miss in volume for its Frito-Lay North America segment, indicating that there may not be immediate improvements in their business model.
Additionally, while PepsiCo’s guidance for 2025 suggests some growth, it is not at a level that indicates a major reset or transformation. The guidance reflects a more modest increase in organic sales and core EPS, which, coupled with the impact of foreign exchange, does not provide the momentum needed to change the current investor debate. While the company is focusing on long-term investments and innovation, these efforts may take time to translate into tangible results, justifying the Hold recommendation for now.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $168.00 price target.

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