PepsiCo Stock Has Fallen Out of Favor. That Could Create an Opportunity

The 24/7 Wall St. price target for PepsiCo (NASDAQ:PEP | PEP Price Prediction) is $145.29. That is about 15.6% above today’s $125.71 share price. The stock wins a buy rating with high confidence from our model.

24/7 Wall St. Price Target Summary

PepsiCo trades at a forward multiple of 14x and yields 4.36%. The stock has beaten EPS estimates 5 quarters running. North America is the problem. International growth, cost cuts and a valuation correction offer a credible path back toward its old range.

A Guidance Cut Left PepsiCo Near Its 52-Week Low

Shares are down 9.2% over the past month and 9.75% year to date. They traded at $143.30 when second-quarter results came out in July. The stock sits 24.5% below its $166.41 52-week high and just 1.8% above its $123.47 low.

Third-quarter adjusted EPS of $2.34 beat the $2.30 estimate. Revenue rose 5.6% to $25.27 billion. Management cut core EPS growth guidance to 2.5% to 3.5%, down from 5% to 7%. CEO Ramon Laguarta said “our business in North America performed below our expectations and represents a meaningful opportunity for improvement.”

Why Bulls See $156 Within Reach

International is the growth engine. EMEA and Asia Pacific each posted 9% organic growth, and LatAm Foods rose 14%. Management expects international revenue to top $40 billion this year. February snack price cuts of up to 15% returned U.S. foods to volume growth.

A $10 billion buyback, cost cuts and a 54th consecutive dividend increase add support. Our bull case reaches $156.62. Wall Street shows 18 Hold ratings against 5 Buy or Strong Buy ratings.

North America Is the Risk Worth Watching

Frito-Lay North America’s core operating profit fell 12%, and North American beverage volume dropped 2%. Core operating margin contracted 35 bps, with a tariff refund adding 4 points.

Reported operating income rose 19.36%. Much margin pressure stems from calculated affordability investments. The bear case of $135.04 still sits above today’s price.

PepsiCo Trades at a Discount to Coca-Cola and Mondelez

Coca-Cola (NYSE:KO) is PepsiCo’s direct soda rival with a 34.9% operating margin wins a premium multiple.

Mondelez International (NASDAQ:MDLZ) competes in global snacks and commands a higher multiple.

Keurig Dr Pepper (NASDAQ:KDP) is cheaper on forward earnings but its 5.1% return on equity trails PepsiCo’s 42.86% by a wide margin. Our target means about 16x forward earnings, below both Coca-Cola and Mondelez.

PepsiCo Price Prediction 2026-2030

A buy rating with a 24/7 Wall St. price target of $145.29 and 90% confidence. A defensive franchise with a 4%-plus yield trading at a peer-group discount tips the scale.

North American volume stability and margin-protecting cost cuts would strengthen the case. A further guidance cut from management in early 2027 would hurt it.

Our model projects PepsiCo could trade as follows in the base case:

PepsiCo’s continued execution of its current strategy supports these projections. A faster North American recovery could drove results above these figures, while lasting input-cost inflation could pull them below.

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