From 24/7 Wall St. · Alex Sirois · · 1m 20s
Pepsi's 41% Upside Target Sparks Wall Street Debate
BNP Paribas Exane's $183 target for PepsiCo implies 41% gains, but North American struggles threaten the bull case.
In brief
BNP Paribas Exane's $183 target for PepsiCo implies 41% gains, but North American struggles threaten the bull case. PepsiCo's shares trade 19% below Wall Street consensus at $155, with BNP Paribas Exane's $183 target requiring North American volume stabilization. Originally reported by 24/7 Wall St..
PepsiCo's Current Price
PepsiCo trades at $129.75, while Wall Street analysts average $155, leaving shares 19% below consensus.
North American Slump
PepsiCo Foods North America revenue fell 2% in Q2, with core operating margins contracting 40 basis points.
BNP Paribas Target
BNP Paribas Exane maintains a $183 price target, implying 41% upside from current levels.
International Growth
Latin America Foods grew 15%, Asia Pacific Foods grew 12%, and EMEA grew 10% in Q2.
Wall Street Split
Among 24 analysts, 4 Strong Buy, 3 Buy, 16 Hold, and 1 Sell split reflects cautious sentiment.
Bull Case Requirements
North American volume must stabilize while international growth and tariff refunds deliver 1 point of EPS growth.
Coca-Cola Comparison
Coca-Cola trades at $88.15 against a $94.70 target, implying 7% upside, near its 52-week high.
Pepsi's 41% Upside
PepsiCo's $129.75 price with BNP Paribas Exane's $183 target implies 41% gains if North America stabilizes.
Here's the gist
PepsiCo's shares trade 19% below Wall Street consensus at $155, with BNP Paribas Exane's $183 target requiring North American volume stabilization.
