[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

![CorleoneDon77 Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1577382889104318472.png) DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5288 followers
Created: 2025-07-18 18:56:27 UTC

$PEP

Attached is page X of a 8-page Bank of America analyst report on PEP issued yesterday entitled:

"A “Simply” pleasant surprise"

Bank of America has a 'Neutral' rating on PEP with a $XXX price target.

Bank of America's summary statement regarding PEP in the report includes the following:

"Raising estimates, PEP story remains a work in progress:

2Q results (see our recap note here) surpassed BofA/Consensus and PEP also raised its FY25 EPS outlook on lesser FX headwind. The stock reacted in kind with shares +7.5%. Our higher FY25 EPS estimate of $XXXX (prior $7.87) reflects today’s beat as well as the flow through of FX benefit. 

Despite better-than-expected results, we believe Pepsi Foods (PFNA) faces continued challenges, in particular a difficult 3Q comparison vs last year’s promotional window that may cause a step back before further sequential improvement around Lay’s & Tostitos 4Q re-launches. 

To preserve PFNA volumes, PEP is rebalancing promotional depths and frequencies towards better everyday value. The company is also making structural adjustments (2 plant closures) to improve margins. On PBNA, PEP is improving revenue growth management capabilities and taking strategic actions to improve margins (removal of case pack water, transportation efficiencies).

Intl. remains the growth driver for rest of FY25:

We expect PEP’s international markets to continue to lead organic sales growth for total PEP of LSD for 2025; namely strength in Latam (both Brazil and Mexico as it laps easy compares) and EMEA to lead the way on pricing actions as well as per capita consumption growth. We expect both to grow MSD/HSD organic for rest of FY25.

Reiterate Neutral rating & Raise PO to $150:

Reiterate Neutral, raise PO to $XXX (from $145) on higher estimates, still based on 17.5x CY26E EPS. We value PEP below non-alc beverage peers given near-term challenges in US Snacks, balanced by positioning to deliver resilient earnings on portfolio flexibility.

-- Price Objective Basis:

Our $XXX PO is based on a 17.5x CY26E EPS target multiple, below non-alcoholic beverage peers, justified by our view of PEP's near-term challenges in its US Salty Snacks and Soft Drinks businesses, balanced by positioning to deliver still-resilient earnings thanks to considerable portfolio flexibility. Dividends & share repurchases, though somewhat tempered in the near-term by portfolio and pricing strategy realignments, nonetheless remain a viable avenue to return cash to shareholders. 

-- Upside risks to our PO: 

1) Low to moderate FX headwinds. 
2) Rebase initiatives put the business in a better position for growth. 
3) Improving volume/price/mix in soft drinks. 

-- Downside risks to our PO: 

1) FX becomes a larger headwind than expected. 
2) Frito Lay North America experiences a major continued decline in volumes despite tempered pricing."

(Page X is not available here as X does not allow me to post pages from reports on this platform)


XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1946282939932709155/c:line.svg)

**Related Topics**
[pep](/topic/pep)
[united states](/topic/united-states)
[bank of](/topic/bank-of)
[$pep](/topic/$pep)
[stocks consumer defensive](/topic/stocks-consumer-defensive)
[bank of america](/topic/bank-of-america)
[stocks financial services](/topic/stocks-financial-services)
[stocks banks](/topic/stocks-banks)

[Post Link](https://x.com/CorleoneDon77/status/1946282939932709155)