PepsiCo (PEP – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Bryan Spillane from Bank of America Securities reiterated a Buy rating on the stock and has a $185.00 price target.
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Bryan Spillane’s rating is based on several strategic factors that suggest a positive trajectory for PepsiCo despite challenges. The company is focusing on revitalizing its growth through various initiatives, particularly within Frito-Lay North America (FLNA), which remains a crucial element for earnings and share price improvement. By addressing consumer demand with value-oriented offerings and launching products with ‘clean’ ingredients, PepsiCo aims to enhance its market position despite high prices and changing consumer preferences.
Internationally, PepsiCo is making strategic adjustments by restructuring its segments to improve performance, with expectations of outperforming the North American market in 2025. Despite a subdued short-term outlook in North America, anticipated improvements in margins and strategic changes in product offerings are expected to support long-term growth. Consequently, Spillane maintains a Buy rating with a price objective of $185, reflecting confidence in PepsiCo’s ability to navigate current challenges and capitalize on future opportunities.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $158.00 price target.