Update shared on26 Sep 2025
Fair value Decreased 1.08%Analysts modestly lowered PepsiCo’s price target to $152.57, citing ongoing international volume softness and muted U.S. topline growth, though overall sentiment remains supported by strategic partnerships and productivity improvements.
Analyst Commentary
- Bullish analysts note that PepsiCo’s strategic partnership with Celsius Holdings—including transferring Alani Nu to PepsiCo’s distribution network and acquiring the Rockstar brand—will accelerate distribution, revenue, and margin growth opportunities for both parties.
- PepsiCo’s increased equity stake in Celsius, along with Celsius being named “energy drink captain” in Pepsi’s system, is viewed as strengthening strategic alignment and providing Celsius greater control and execution over the combined energy portfolio.
- Bullish analysts highlight that PepsiCo’s fresh “portfolio approach” signals increased innovation and focus in the energy drink space, supporting long-term growth potential.
- Bearish analysts have cited international volume softness as a reason for lowering price targets, though they maintain positive ratings on PepsiCo based on overall business strength and productivity improvements.
- Muted topline growth and ongoing U.S. market challenges continue to temper some analysts' optimism, resulting in more balanced or neutral ratings despite improved earnings visibility.
What's in the News
- Elliott Investment Management has acquired a roughly $4B stake in PepsiCo, becoming one of its top five active investors and plans to push for strategic changes to enhance shareholder value (WSJ).
- Elliott is urging PepsiCo to review its brand portfolio, divest underperforming brands, and overhaul its bottling network to improve the company's stock price (WSJ).
- PepsiCo is set to increase its stake in Celsius Holdings to 11% through a $585M investment in convertible preferred stock; the deal includes Celsius acquiring PepsiCo's Rockstar Energy brand in the U.S. and Canada (Bloomberg).
- PepsiCo plans to raise prices on carbonated soft drinks in the U.S. to offset the impact of tariffs and higher input costs, including concentrate and aluminum (Beverage Digest).
- PepsiCo management stated it is reviewing Elliott’s proposals with the aim of driving long-term shareholder value (WSJ).
Valuation Changes
Summary of Valuation Changes for PepsiCo
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $154.24 to $152.57.
- The Net Profit Margin for PepsiCo remained effectively unchanged, moving only marginally from 11.62% to 11.49%.
- The Consensus Revenue Growth forecasts for PepsiCo remained effectively unchanged, moving only marginally from 3.4% per annum to 3.5% per annum.
Disclaimer
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