US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com - Piper Sandler has maintained its Overweight rating and $160.00 price target on Pepsico (NASDAQ:PEP) stock, according to a research note released Tuesday. The target represents potential upside from the current price of $148.20, with analyst targets ranging from $115 to $175. According to InvestingPro analysis, PepsiCo is currently trading near its Fair Value.
The firm expressed patience regarding the stock’s outlook, acknowledging that cautious U.S. consumer behavior continues to impact category trends, particularly in the Frito-Lay North America (FLNA) segment. Despite these challenges, PepsiCo maintains impressive gross profit margins of 54.7% and generates annual revenue of $91.7 billion.
Piper Sandler emphasized that Pepsico’s focus on innovation represents the correct strategic approach for the company, despite potentially requiring time to yield results.
The research firm specifically noted it does not believe "drastic pricing actions" or a price reset would be necessary or beneficial for the beverage and snack giant.
Piper Sandler also highlighted Pepsico’s renewed focus on its Muscle Milk brand as a potential success, particularly if the company can develop a "clean ingredient version" that resonates with consumers.
In other recent news, PepsiCo reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $2.12, compared to the forecasted $2.03. The company’s revenue reached $22.73 billion, exceeding the anticipated $22.25 billion. Following these results, BofA Securities raised its price target for PepsiCo to $150 from $145, while maintaining a Neutral rating. BofA Securities also increased its fiscal year 2025 earnings per share estimate to $8.04 from $7.87, citing the reduced foreign exchange headwinds. Additionally, UBS reiterated its Buy rating with a $175 price target after discussions with PepsiCo executives. These developments highlight the company’s strong financial performance and growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.