Kaumil Gajrawala, an analyst from Jefferies, maintained the Buy rating on PepsiCo (PEP – Research Report). The associated price target is $182.00.
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Kaumil Gajrawala has given his Buy rating due to a combination of factors influencing PepsiCo’s financial outlook. Despite a challenging year with modest organic growth and earnings per share (EPS) increases, PepsiCo has demonstrated resilience. The company’s long-term growth trajectory shows an average annual growth rate that aligns with or surpasses expectations, driven by strategic focus on category growth, productivity enhancements, and restructuring initiatives.
Looking forward to 2025, although initial guidance suggests growth below historical trends, PepsiCo’s robust strategies in North America and international markets are poised to foster sequential improvements. The market’s modest expectations and PepsiCo’s strong dividend yield further support the Buy recommendation, with the potential for enhanced operating leverage and margin expansion anticipated in the future.
According to TipRanks, Gajrawala is a 3-star analyst with an average return of 1.0% and a 50.84% success rate. Gajrawala covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Clorox, and Coca-Cola.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $185.00 price target.