Quick Learning
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PEP is trading at $142, implying 20% upside to the $170.18 price target, supported by strong Q1 revenue growth and 90% model confidence.
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Piper Sandler estimates PEP Overweight at $178, and $10 billion in purchases and 54 consecutive dividend increases support the bulls’ case for 2027.
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The subject number for this article is $180, and I want to address it before anyone moves on.
Our proprietary 24/7 Wall St PepsiCo (NASDAQ:PEP) is $170.18 in the next 12 months, with a clear path to $180 in the bull case as the opening of the World Cup, production savings, and a simple food combination for recovery in 2027. With shares at $142.02, that basis case represents a 19.83% increase.
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Metric |
Price |
|---|---|
|
Current Price |
$142.02 |
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24/7 Wall St. Price Target |
$170.18 |
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He is looking up |
19.83% |
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Research Perspective |
What is constructive |
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Confidence Level |
90% |
Newly Sold Defense Name
PEP is down 4.42% over the past 30 days and 1.19% over the past week, partly reflecting hawkish Fed comments that have dampened appetite for dividend stocks. If you zoom out, shares are up 14.55% over the past year and Pepsi remains a Consumer Protection anchor with a beta of 0.359.
Q1 FY2026 delivered core EPS of $1.61 on revenue of $19.44 billion, an 8.5% year-over-year gain. Operating margin expanded 210 basis points to 16.5%, and management confirmed full-year revenue growth of 2% to 4%. The next revenue catalyst will come on July 9, 2026.
Why Bulls See $180 By Mid-2027
Piper Sandler maintains an Overweight price target of $178, while TIKR’s long-term model points to $208 by December 2030. Our bull case scenario reaches $177.28 by June 2027, with the $180 mark achievable if Q2 and Q3 earnings extend the Q1 beat line.
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The drivers of growth are evident. CEO Ramon Laguarta noted that PBNA grew by 9% in Q1, and international markets are accelerating in time for the start of the 2026 World Cup. PFNA added 300 million new user sessions compared to the previous year.
Laguarta said: “We saw momentum in PBNA, both organic and reported…And sequential growth in PFNA.” Add a $10 billion buyback authorization, 54 consecutive dividend hikes, and active institutional buybacks, and the bullish numbers work.
Risks to Watch Out for
Taxable asset costs hit PBNA with an 11 percent impact in Q4 25, while FY25 operating income fell 19.57 percent to Rockstar and Be & Cheery losses to $1.993 billion. Volume softening in junk food and snacks associated with GLP-1 recovery can suppress organic growth down to a range of 2% to 4%. Our bear case scenario stands at $152.27.
