Stock Reviews

PepsiCo Stock Prediction: Where Analysts See the Stock Going by 2027

Nikko Henson • 5 minute read

Reviewed by: Thomas Richmond

Last updated Oct 5, 2025

PepsiCo Inc. (NASDAQ: PEP) has faced a challenging stretch. The stock is down sharply from its highs, pressured by softer demand in developed markets and higher input costs. Shares now trade near $142/share, down roughly 20% from last year’s peak. Even so, PepsiCo’s strong portfolio of snacks and beverages continues to make it one of the most dependable names in consumer staples.

Recently, PepsiCo reported steady third-quarter results with revenue growth returning to positive territory, supported by stronger pricing and easing inflation pressure. The company also announced expanded cost-cutting measures expected to deliver over $1 billion in annual savings, while rolling out new zero-sugar product lines to drive healthier growth. These updates signal that PepsiCo is still adapting and finding ways to protect profitability in a slower consumer environment.

This article explores where Wall Street analysts think PepsiCo could trade by 2027. We’ve gathered consensus targets and TIKR’s guided valuation model to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.

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Analyst Price Targets Suggest Modest Upside

PepsiCo trades near $142/share today. The average analyst price target is $152/share, pointing to around 7% upside over the next year. Forecasts show a broad range of opinions:

High estimate: ~$170/share
Low estimate: ~$115/share
Median target: ~$155/share
Ratings: 4 Buys, 2 Outperforms, 15 Holds, 2 Sells

For investors, this represents modest upside and reflects the market’s balanced view. Analysts see PepsiCo as a resilient, income-focused stock that could outperform if earnings growth stabilizes and cost pressures ease, but expectations remain measured after a year of underperformance.

PepsiCo stock — PepsiCo‘s Analyst Price Target

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PepsiCo: Growth Outlook and Valuation

PepsiCo’s fundamentals remain stable, with gradual improvement expected ahead:

Revenue is projected to grow ~2–3% annually through 2027
Operating margins are forecast to expand to ~16%
Shares trade at ~17x forward earnings, slightly below their long-term average
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 17.1x forward P/E suggests ~$168/share by 2027
That implies about 18% total upside, or roughly 7.7% annualized returns

For investors, this outlook highlights a steady compounding story. PepsiCo may not deliver rapid growth, but its brand strength, pricing power, and balanced portfolio continue to provide reliable earnings and dividends. The stock looks appropriately valued for its defensive nature, offering stability more than excitement.

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What’s Driving the Optimism?

PepsiCo’s portfolio of iconic brands like Lay’s, Doritos, and Gatorade continues to anchor steady results even in a slower spending environment. The company’s pricing power has offset weaker volumes, while ongoing productivity initiatives are improving margins.

International markets are also contributing more to growth, especially in Latin America and Asia, where demand for snacks and ready-to-drink beverages remains resilient. At the same time, PepsiCo’s investment in zero-sugar and functional products positions it to capture shifting consumer preferences toward healthier options.

For investors, these strengths suggest PepsiCo is well-equipped to sustain moderate earnings growth and protect margins, even as the broader consumer backdrop remains mixed.

Bear Case: Valuation and Growth Limits

Even with these positives, PepsiCo’s valuation looks fair rather than cheap. Shares trade around levels that already price in much of its defensive quality. With revenue growth running near the low single digits, upside may be limited unless the company delivers stronger volume recovery or faster margin expansion.

Competition is another factor to watch. Rivals like Coca-Cola and Mondelez continue to push into emerging categories, making it harder for PepsiCo to expand share. Persistent cost inflation and currency pressures could also limit near-term profit growth.

For investors, the risk is that PepsiCo’s reliability might not translate into strong returns if growth stays subdued and valuations remain steady.

Outlook for 2027: What Could PepsiCo Be Worth

Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 17.1x forward P/E suggests PepsiCo could trade near $168/share by 2027. That would represent about 18% total upside, or roughly 7.7% annualized returns from today’s price of $142/share.

While this forecast points to steady gains, it already assumes margin stability and continued pricing strength. To deliver stronger returns, PepsiCo would need faster international growth, sustained cost savings, or a rebound in beverage demand.

For investors, PepsiCo stands out as a dependable dividend compounder rather than a high-growth opportunity. It offers stability and consistent cash generation, making it best suited for long-term portfolios focused on income and capital preservation.

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