
PepsiCo (PEP) Stock Forecast & Price Target
PepsiCo (PEP) Analyst Ratings
Bulls say
PepsiCo's strong positioning in the global snacks and beverages market is underscored by its ownership of leading brands and its dominance in savory snacks, which drive approximately 55% of its total revenue. The recent improvement in the Frito segment's volumes, alongside a commitment to reinvest in advertising and promotion to stimulate consumer demand, illustrates the company's proactive approach to fostering growth despite current challenges. Furthermore, with international markets contributing 40% to total sales and operating profits, PepsiCo is well-positioned to leverage its diversified portfolio globally, enhancing its overall financial resilience.
Bears say
PepsiCo has experienced significant pressure on its stock due to historical patterns, with its next twelve months price-to-earnings (NTM P/E) ratio contracting nearly 40% during the 2008-09 recession, suggesting vulnerability to economic downturns. Current operational challenges, including decelerating food volumes in China, shifts in Mexico tied to election-related socioeconomic factors, and adverse weather impacting parts of western Europe, have prompted a reduction in the company's organic growth estimates for fiscal year 2024 from 3.2% to 1.9%. Additionally, the company's overall underperformance relative to market expectations has fostered a negative sentiment regarding its financial outlook for 2025, with anticipated guidance remaining cautious.
This aggregate rating is based on analysts' research of PepsiCo and is not a guaranteed prediction by Public.com or investment advice.
PepsiCo (PEP) Analyst Forecast & Price Prediction
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