Peter Grom, an analyst from UBS, maintained the Buy rating on PepsiCo. The associated price target remains the same with $170.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Peter Grom has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for PepsiCo. Despite the anticipated challenges in the upcoming third quarter, such as sluggish trends in the US and softness in key international markets, Grom believes these issues are well understood by investors. The focus is expected to shift towards the potential for PepsiCo’s North American segment to return to growth in the near future.
Looking beyond the immediate quarter, Grom sees a favorable setup for PepsiCo, with the potential to deliver organic growth that is in line with or exceeds many of its multinational peers. He also identifies a credible path to high single-digit EPS growth by 2026. With a similar fundamental trajectory and the potential for meaningful multiple expansion, Grom views the risk/reward balance as skewed to the upside, justifying his Buy rating.
In another report released on September 16, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $158.00 price target.