Vandita Jadeja
Tue, June 23, 2026 astatine 9:44 AM CDT 4 min read
Quick Read
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PEP trades astatine $142, implying ~20% upside to the $170.18 terms target, supported by beardown Q1 gross maturation and 90% exemplary confidence.
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Piper Sandler rates PEP Overweight astatine $178, and a $10 cardinal buyback positive 54 consecutive dividend hikes bolster the 2027 bull case.
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The header fig for this nonfiction is $180, and I privation to code it caput connected earlier anyone scrolls further.
Our proprietary 24/7 Wall St. terms people for PepsiCo (NASDAQ:PEP) is $170.18 implicit the adjacent 12 months, with a wide way to $180 successful the bull lawsuit arsenic the World Cup activation, productivity savings, and convenient foods betterment compound done 2027. With shares astatine $142.02, that basal lawsuit implies 19.83% upside.
A Defensive Name That Just Went connected Sale
PEP has fallen 4.42% implicit the past 30 days and 1.19% successful the past week, partially reflecting hawkish Fed commentary that dimmed appetite for dividend stocks. Zooming out, shares are up 14.55% implicit the past twelvemonth and Pepsi remains a Consumer Defensive anchor with a beta of 0.359.
Q1 FY2026 delivered halfway EPS of $1.61 connected gross of $19.44 billion, a 8.5% year-over-year gain. Operating borderline expanded 210 ground points to 16.5%, and absorption reaffirmed full-year integrated gross maturation of 2% to 4%. The adjacent net catalyst lands connected July 9, 2026.
Why Bulls See $180 by Mid-2027
Piper Sandler maintains an Overweight standing with a $178 terms target, portion TIKR's longer-term exemplary points to $208 by December 2030. Our bull lawsuit script lands astatine $177.28 by June 2027, with the $180 people wrong scope if Q2 and Q3 net widen the Q1 bushed streak.
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Growth drivers are tangible. CEO Ramon Laguarta noted that PBNA grew 9% successful Q1, and planetary markets are accelerating astir the 2026 World Cup activation. PFNA added 300 cardinal caller depletion occasions versus the anterior year.
Laguarta stated: "We've seen momentum successful PBNA, some integrated and reported...And sequential maturation successful PFNA." Add a $10 cardinal buyback authorization, the 54th consecutive dividend hike, and progressive organization buying, and the bull mathematics works.
The Risks Worth Watching
Tariff-driven commodity costs deed PBNA with an 11 percent constituent interaction successful Q4 25, and FY25 operating income fell 19.57% connected Rockstar and Be & Cheery impairments totaling $1.993 billion. Volume softness successful convenient foods and slower snack depletion tied to GLP-1 adoption could unit integrated maturation toward the bottommost of the 2% to 4% range. Our carnivore lawsuit script stops astatine $152.27.

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