BofA Maintains PepsiCo 'Neutral' Rating with $150 Price Target

Summary

Bank of America Securities maintains a ‘neutral’ rating for PepsiCo with a target price of $150. Despite some relief from lower company expenses and tax rates, North American food sales are underperforming. PepsiCo is set to release its Q3 2025 earnings on October 9, with an expected EPS of $2.26. Organic sales growth forecast has been revised down from 2.0% to 1.8% year-over-year. Market sentiment remains low, with no improvement in core business.Zhitong

Impact Analysis

So basically, Bank of America Securities is playing it safe with PepsiCo, sticking to a ‘neutral’ rating and a $150 target price despite some operational headwinds in North America. The interesting part isn’t just the rating itself, but the context—PepsiCo’s North American food sales are lagging, and the organic sales growth forecast has been trimmed slightly from 2.0% to 1.8%Zhitong. This suggests that while cost and tax reliefs are helping, they aren’t enough to offset the core business struggles. The technical analysis also shows a mixed picture with a long-term uptrend but short-term bearish signals like the MACD death cross. Market sentiment is clearly cautious, and with activist investors like Elliott pushing for strategic changes, there’s pressure on management to deliver. I’d read this as a signal to watch PepsiCo’s upcoming earnings closely for any signs of strategic shifts or operational improvements. The market might be underestimating the potential for a turnaround if management can address these core issues effectively.