Pepsico (PEP) PT Raised to $165 at Wells Fargo

Wells Fargo analyst Chris Carey raised the price target on Pepsico (NASDAQ: PEP) to $165.00 (from $154.00) while maintaining a Equal Weight rating.

The analyst comments "PEP expects volumes to turn positive in PFNA in Q1 and accelerate through 2026, anchored by shelf gains April/May. The stock was +4.9% vs Staples +1.7%: 1) some credit for these targets, 2) amid the strongest start for Staples in generations. PEP...and the Staples tape. There was much debate about the move in PEP's stock following Q425 results which were about in-line. A few thoughts: 1) this is the best start to a year for Staples vs. the S&P 500 in generations, +1,000bps vs SPX...there's been only one year since 1990 >+5ppts (2016, +560bps); 2) PEP committing to PFNA vol growth in 1H on shelf gains brought forward a key tenet of the recovery story. A buoyant Staples tape + a message of "on track" = path of least resistance higher."

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