
PepsiCo (PEP) Stock Forecast & Price Target
PepsiCo (PEP) Analyst Ratings
Bulls say
PepsiCo has demonstrated significant resilience in its snack segment, with Frito experiencing growth of approximately 16% in 2022 and 10% in 2023, despite flat volume trends, highlighting the company's ability to maintain revenue momentum in a challenging market. The company's strategic focus on affordable price points and innovation is expected to support organic sales growth, which is conservatively modeled at 2.1% for 2026, with indications of potential upside. Additionally, a forthcoming one-time non-operational benefit related to operational adjustments is projected to enhance North American beverage margins, further reinforcing the positive outlook for PepsiCo's financial performance.
Bears say
PepsiCo's financial outlook is negatively impacted by macroeconomic pressures and a significant contraction in its next twelve months price-to-earnings (NTM P/E) ratio, which fell from an average of 20x to a low of 12x during the previous recession, indicating vulnerability in its valuation. The company faces category-specific challenges, particularly within the carbonated soft drink (CSD) segment, where share losses and declining demand for diet beverages are contributing to limited top-line growth, exacerbated by a slowing Frito-Lay business. Additionally, the suggestion to consider refranchising bottling operations in North America reflects underlying concerns about the sustainability of its beverage operations amidst increasing competition.
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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