From Financial Modeling Prep: 2025-03-18 12:50:00

Barclays downgraded PepsiCo (NASDAQ:PEP) from Overweight to Equalweight, lowering the price target to $156 from $168 due to near-term headwinds in the Frito-Lay North America division.

Investor sentiment is tied to FLNA’s volume recovery, with Barclays expecting stabilization to take several more quarters in an uncertain macroeconomic environment.

Barclays sees FLNA achieving sustainable volume growth of 1.5% and organic sales growth of around 3% in the long run, with PepsiCo’s overall sales growth of 4-6% and profit growth of 7-9% likely at the lower end.

PepsiCo’s high-teens multiple valuation reflects a balanced risk-reward outlook, with FLNA’s short-term struggles offset by strong international business and productivity initiatives supporting 4% sales growth and 7% EPS growth in the long run.



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