Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis for PEP stock:

Technical Analysis

The stock is currently trading at $148.25, showing signs of weakness with RSI at 43.29 indicating neutral to slightly bearish momentum. The stock is trading below its 20-day moving average of $149.08, suggesting short-term bearish pressure.

Recent Events & Impact

• FTC Lawsuit: On January 17, 2025, the FTC filed a lawsuit against PepsiCo regarding unfair pricing practices with Walmart. This has added regulatory pressure on the stock.
• Red No. 3 Ban: The FDA's recent ban on Red No. 3 dye could impact food manufacturers including PepsiCo, though the company has demonstrated ability to adapt to regulatory changes historically.

Fundamental Strength

• Dividend King Status: PepsiCo has increased dividends for 52 consecutive years
• Current dividend yield of 3.7% is significantly higher than the S&P 500's 1.3% yield
• P/E ratio of 16.9x (based on 2025 estimates) is below both the broader market and competitor Coca-Cola

Analyst Ratings

Recent analyst actions show mixed sentiment:

• Barclays: Lowered PT to $158, maintains Buy rating
• UBS: Lowered PT to $175, maintains Strong Buy
• Deutsche Bank: Upgraded to Strong Buy with $184 PT

Conclusion SELL recommendation at current levels. While PepsiCo remains fundamentally strong with reliable dividend growth, the combination of regulatory pressures, technical weakness, and recent analyst price target reductions suggests potential further downside in the near term. Better entry points may present themselves after the stock digests these headwinds.

Based on the provided data and market analysis, here is the price prediction for PEP stock in 2025:

PepsiCo's stock price is expected to reach $167-168 by end of 2025, representing about 13% upside from current levels of $148, driven by its defensive business model and consistent dividend growth. The company's strong position in both beverages and snacks provides stability, while its strategic acquisitions in healthier options like Sabra hummus position it well for changing consumer preferences.

The stock is currently trading at an attractive valuation of 16.9x forward 2025 earnings, which is below both its historical average P/E of 26.1x and competitor Coca-Cola's 20.9x multiple. This conservative valuation provides good upside potential while limiting downside risk.

However, investors should note some near-term headwinds including volume declines and pricing pressures that may create volatility. The recent FTC lawsuit regarding pricing practices with Walmart also adds some regulatory uncertainty.

The S1 support level for PEP Stock is $142.53 ,The R1 resistant level for PEP Stock is $149.75.

As of the end of day on 2025-01-17, the price of PEP Stock was $148.24.

The target price for PEP Stock according to analyst rating is 169.20, with the highest price target at 184.00 and the lowest at 155.00. Analysts have a Moderate Buy rating on PEP Stock overall.

The market cap of PEP is $203.4B.

Based on the provided data and recent market analysis, here's a concise evaluation of PEP's valuation:

Current Valuation Metrics PEP is currently trading at a P/E of 26.13, EV/EBITDA of 15.53, and P/S of 2.66 in Q3 2024, showing elevated multiples compared to historical averages.

Recent Performance The stock has declined 9.7% in the past month, underperforming both its sector and the broader market. This decline has brought valuations down but they remain above industry averages.

Analyst Sentiment Recent analyst actions indicate concerns about valuation, with multiple firms lowering price targets. Barclays recently reduced their target from $183 to $158, while UBS lowered theirs from $193 to $175, suggesting the stock was previously overvalued.

Growth Challenges The company faces headwinds in 2025, including promotional pressures in its key Frito-Lay segment and uncertain consumer spending. Revenue growth is projected at just 0.81% for the upcoming quarter, indicating slowing momentum.

Conclusion At current levels, PEP appears moderately overvalued considering its growth challenges, elevated multiples, and analyst concerns. The recent price decline has improved the valuation picture somewhat, but not enough to consider it attractively valued given the near-term headwinds.

PepsiCo, Inc. is a beverage and convenient food company. The Company's segments include Frito-Lay North America, which includes its food businesses in the United States and Canada; Quaker Foods North America, which includes its food businesses, such as cereal, rice, pasta and other branded food, in the United States and Canada; PepsiCo Beverages North America, which includes its beverage businesses in the United States and Canada; Latin America, which includes its beverage and convenient food businesses in Latin America; Europe, which includes its beverage and convenient food businesses in Europe; Africa, Middle East and South Asia (AMESA), which includes all of its beverage and convenient food businesses in Africa, the Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region (APAC), which includes all of its beverage and convenient food businesses in Asia Pacific, Australia and New Zealand, and China region. Its brands include Lays, Doritos and Cheetos.

Based on the provided data and market analysis, here is a concise prediction for PepsiCo (PEP) stock price in 2030:

PepsiCo stock is projected to reach $210-225 by 2030, driven by its strong defensive business model and consistent dividend growth history as a Dividend King. The company's strategic expansion in snacks and healthier beverages, combined with its global distribution network, positions it well for steady growth despite near-term volume challenges. The recent acquisition of Sabra and Siete for $1.2 billion demonstrates PepsiCo's commitment to long-term growth in the snack segment.

PEP has a total of 318000 employees.