PepsiCo stock rating reiterated at Buy by UBS with $172 price target

Investing.com - UBS maintained its Buy rating on PepsiCo (NASDAQ:PEP) with a price target of $172.00, according to a research note released Monday. The beverage giant, currently trading at $149.60 with a market capitalization of $203.66 billion, appears slightly undervalued according to InvestingPro’s Fair Value analysis.

The firm expressed confidence in management’s increased conviction that current and upcoming business actions will improve trends across the portfolio, even if the operating and consumer environment remains unchanged. The company maintains impressive gross profit margins of 54.7% and has earned a GOOD Financial Health Score from InvestingPro, which offers 8 additional key insights about PepsiCo’s performance.

UBS highlighted that returning PepsiCo’s North America business to growth appears to be management’s primary focus, based on recent remarks from company leadership.

The research note also pointed out that the organization’s productivity capabilities have strengthened compared to the beginning of the year, which should support stronger bottom-line performance.

UBS believes these productivity improvements will benefit PepsiCo’s financial results over both the near and medium term, even after accounting for further reinvestment in the business.

In other recent news, PepsiCo reported third-quarter 2025 earnings that surpassed forecasts, with earnings per share at $2.29, exceeding the expected $2.26. The company’s revenue also outperformed expectations, reaching $23.94 billion compared to the anticipated $23.86 billion. Following these results, UBS raised its price target for PepsiCo to $172, maintaining a Buy rating, citing effective cost management and favorable foreign exchange rates. Wells Fargo also adjusted its price target to $154, maintaining an Equal Weight rating, and highlighted ongoing debates about the company’s sales growth and profit power. Meanwhile, RBC Capital reiterated its Sector Perform rating and $145 price target, noting challenges in domestic top-line performance and international market softness. PepsiCo has reiterated its full-year outlook for both top and bottom lines, indicating confidence in its financial trajectory. These developments reflect a mix of optimism and caution from analysts regarding PepsiCo’s future performance.

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