Citigroup Reiterates Buy Rating on Pepsico, Lowers PT to $165

Citigroup Reiterates Buy Rating on Pepsico, Lowers PT to $165

Citigroup analysts have reaffirmed their "buy" rating on PepsiCo (NASDAQ:PEP), while reducing the price target to $165.00 from $168.00. This adjustment suggests a potential upside of 16.06% from the stock's previous close. The updated target was announced on September 25, 2025, in a research report by Citigroup PepsiCo (NASDAQ:PEP) Price Target Cut to $165.00 by Analysts at Citigroup^[1].

PepsiCo, a leading manufacturer and distributor of beverages and convenient foods, has seen its stock price fluctuate over the past year. The company reported earnings per share (EPS) of $2.12 for the quarter ending July 17, 2025, exceeding the consensus estimate of $2.03. Revenue for the quarter was $22.73 billion, up 1.0% year-over-year. The company's FY 2025 guidance was set at 8.038-8.038 EPS, with analysts forecasting 8.3 EPS for the current year PepsiCo (NASDAQ:PEP) Price Target Cut to $165.00 by Analysts at Citigroup^[1].

Despite the earnings growth, PepsiCo has faced challenges, including a 6% drop in share price since the beginning of 2025. This decline has been attributed to stalled earnings growth and limited momentum in recent quarters. However, the company remains a Dividend King, having raised its dividends for 53 consecutive years. As of September 18, 2025, PepsiCo offers a quarterly dividend of $1.4225 per share and a dividend yield of 4.02% Building a Dividend Stock Portfolio: PepsiCo’s (PEP) Stability and Growth Potential^[2].

Institutional investors have shown continued interest in PepsiCo. Several firms, including Nova Wealth Management Inc. and Evolution Wealth Management Inc., have acquired new positions in the stock during the first and second quarters of 2025, respectively PepsiCo (NASDAQ:PEP) Price Target Cut to $165.00 by Analysts at Citigroup^[1].

While Citigroup's revised target suggests a positive outlook for PepsiCo, investors should consider the broader market conditions and the company's future prospects. The stock's consensus rating among analysts is "Hold," with an average target price of $158.13 PepsiCo (NASDAQ:PEP) Price Target Cut to $165.00 by Analysts at Citigroup^[1].