Piper Sandler on Pepsico (PEP): 'Doritos May Offer Playbook For 2025'

Piper Sandler analyst Michael Lavery reiterated an Overweight rating and $171.00 price target on Pepsico (NASDAQ: PEP).

The analyst commented: "Doritos May Offer Playbook For 2025; While it can be easy to find fault with PEP's recent weak momentum, especially its slowdown in FLNA with its expensive, rather fruitless heavy discounting in 3Q24, we see some room for hope in 2025 behind recent promotional activity on Doritos. It has returned to a more disciplined, moderate discounting approach in most of 4Q24 that has driven sales growth, volume growth, and share gains during that time. While other large brands continue to struggle (and therefore so does total FLNA), we believe its better performance on Doritos suggests it has regained its promotional sensibilities, and we believe learnings can be applied broadly across the portfolio. If so, we believe its 2025 guidance (top and bottom line) may prove better than expected (or at least better than feared)."

For an analyst ratings summary and ratings history on Pepsico click here. For more ratings news on Pepsico click here.

Shares of Pepsico closed at $151.90 yesterday.

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