Pepsi's growth formula still needs a fix in US
PEP•PepsiCo warned that growth and margin recovery in North America are taking longer than planned and said it would pursue additional cost cuts as demand for snacks and beverages remains sluggish. The average rating from 25 analysts is “hold,” with a median price target of $145.
1. Analysts weigh challenges
J.P. Morgan said international markets remain strong but North American demand is weak, with limited signs of near-term improvement. Deutsche Bank called PepsiCo Beverages North America a competitive laggard with weak margins and said the path to sustained improvement remains unclear. Piper Sandler said new protein and hydration products may support growth, though that growth remains unproven, while RBC Capital Markets said refranchising could help long-term growth.
