Freedom Capital Markets Adjusts PepsiCo Rating to Hold and Reduces Price Target to $164
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
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Should l Buy PEP?
Source: Benzinga
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 164.390
Low
144.00
Averages
161.90
High
172.00
Current: 164.390
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Growth Record: Federal Realty Investment Trust (FRT) has increased its dividend for 58 consecutive years, making it a leader in the REIT sector with 104 properties and 28.8 million square feet of commercial space, focusing on high-quality shopping centers to ensure steady earnings growth that supports ongoing dividend increases.
- Global Beverage Giant: PepsiCo (PEP) recently raised its dividend by 4%, extending its growth streak to 54 years, and with its strong brand portfolio and consistent cash flow, it is expected to continue achieving 4% to 6% annual organic revenue growth, ensuring the sustainability of its dividends.
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- Lululemon's International Strength: Lululemon Athletica's international revenue surged 33% year-over-year, with China alone growing 46%, indicating that despite a 3% decline in the U.S. market, international operations are becoming the main revenue driver, expected to boost overall performance moving forward.
- Hershey's Sales Growth Surprises: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding analysts' expectations of 2.69%, while the CEO is pushing for innovation in healthier, zero-sugar products, which is likely to enhance market share and brand competitiveness.
- Nike's Attractive Valuation: Currently trading at a P/E of 20, Nike is well below its historical average of 31, and despite weak performance in Greater China, North America saw a 9% sales increase, with the upcoming 2026 FIFA World Cup expected to drive demand and profit growth.
- Market Rebound Potential: All three companies possess strong brand influence and market share in their respective sectors, and their current stock prices appear undervalued, presenting investors with an opportunity to capitalize on future rebounds through diversified investments.
See More
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- Lululemon's International Growth: Lululemon's international revenue surged 33% year-over-year in Q3, with China alone up 46%, indicating that while U.S. revenue fell 3%, the international segment is becoming the main revenue driver, expected to boost future performance.
- Hershey's Strong Guidance: Hershey anticipates net sales growth of 4% to 5% in 2026, significantly exceeding the 2.69% forecasted by analysts, as CEO Kirk Tanner focuses on healthier, zero-sugar products, with gross margins expected to improve starting Q2 2026, showcasing strong recovery potential.
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- CEO's Insights: The CEO of PepsiCo discusses the company's approach to testing mini-meal solutions in collaboration with brands like Sabra and Siéte.
- Focus on Innovation: Emphasis is placed on innovative food solutions that cater to changing consumer preferences and lifestyles.
See More
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Consumer Preferences: Key consumer preferences include slow sugar, low sodium, and no artificial ingredients.
Product Attributes: Emphasis on natural colors and portion control is also significant for consumers.
See More
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- PepsiCo's Plans: PepsiCo CEO announces the relaunch of the Quaker brand.
- Focus Areas: The relaunch will emphasize health, heart health, energy, and weight management, targeting the second half of 2026.
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