-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our 12-month price target of $185, based on a 2027 P/E of 20.1x, a justified discount to PEP's five-year mean forward P/E of 22.4x. We maintain our adjusted EPS estimates of $8.65 for 2026 and $9.20 for 2027. Following PEP's stronger-than-expected Q1 earnings and reiteration of its 2026 EPS guidance, we remain at Buy. While the fundamental demand backdrop remains challenging, we think the reported uptick in food volumes (+4%) was a big positive, driven by EMEA (+9%) and the Asia Pacific regions (+9%). We view the challenges facing PEP as discounted at current levels, noting the stock's three consecutive down years (2023-2025), which highlights its strong earnings track record and management's history of conservative guidance. In our view, PEP is a beaten-down blue-chip name in an out-of-favor sector, offering significant value at current levels. Furthermore, we think pressure applied by activist shareholder Elliott Management is likely to drive enhanced operational focus.