PepsiCo Forecasts Low Single-Digit Revenue Growth for 2025 Amidst 4% Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stable Dividend Growth: PepsiCo has increased its dividend for 62 consecutive years, maintaining a 4.1% yield despite facing demand slowdowns and cost pressures, highlighting its appeal as a stable income stock.
- Low Market Valuation: With a forward P/E ratio of 16.2, significantly below the 10-year average of 26.3, PepsiCo's stock reflects market concerns over its growth slowdown, yet presents a buying opportunity for value investors.
- Product Portfolio Optimization: PepsiCo recognizes the need to reduce reliance on sugary drinks and plans to diversify into healthier options, addressing shifting consumer preferences and market demand changes.
- Investor Confidence Restoration: Activist investor Elliott Asset Management holds a $4 billion stake in PepsiCo, advocating for operational improvements that could enhance profitability and market valuation if successfully implemented.
Analyst Views on PEP
Wall Street analysts forecast PEP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEP is 161.90 USD with a low forecast of 144.00 USD and a high forecast of 172.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 145.870
Low
144.00
Averages
161.90
High
172.00
Current: 145.870
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.
