PepsiCo price target lowered to $150 from $155 at BofA

BofA lowered the firm’s price target on PepsiCo (PEP) to $150 from $155 and keeps a Neutral rating on the shares. Q1 results were largely in in-line with the firm’s near-consensus estimates, but management’s FY25 outlook now considers about 40c of tariff- and resultant macro-related drag on EPS that materialized since initial 2025 guidance was provided in early February, the analyst tells investors. Deleverage and incremental interest expense incurred to finance M&A drive the firm’s FY25 EPS forecast down to $7.88 from $8.25 and it also lowered its FY26 and FY27 EPS views, assuming the EPS growth rate is unchanged off a lower base that carries tariffs forward.