PepsiCo Gets Price Target Boost from BofA Amid Strong Q4, Strategic Price Cuts Ahead of Super Bowl

In a vote of confidence for PepsiCo's strategic direction, analysts at Bank of America have raised their price target on the food and beverage conglomerate's shares (NASDAQ: PEP) from $164 to $173. The move, announced February 4, follows PepsiCo's release of its fiscal fourth-quarter and full-year 2025 earnings, which showcased resilient performance in a challenging consumer environment. BofA maintained its Neutral rating on the stock.

The financial update revealed net revenue growth of 5.6% for Q4, contributing to a full-year increase of 2.3%. Quarterly earnings per share reached $1.85, with full-year EPS at $6.00. Company management attributed the strong finish to the year to accelerated revenue growth and significant productivity savings, which fueled operating margin expansion and enabled double-digit EPS growth in the final quarter.

Looking ahead, PepsiCo reaffirmed its financial guidance for fiscal 2026. In a signal of its commitment to shareholder returns, the company also announced a 4% increase in its annualized dividend per share, set to begin with the June 2026 payment. This marks the 54th consecutive year of dividend growth for the consumer staples leader.

In a separate but timely strategic play, PepsiCo announced price reductions of up to 15% on its most popular snack brands—including Lay's, Doritos, and Cheetos—just ahead of the Super Bowl, one of the year's biggest snacking events. Analysts view this as a tactical move to boost volume, enhance brand accessibility, and capitalize on high-visibility consumer demand.

The price target adjustment from BofA places it notably above the Hold rating and $148 target reaffirmed by Barclays in early January, highlighting a divergence in analyst perspectives on the stock's near-term trajectory.

Market Voices:

• Michael Torres, Portfolio Manager at Clearwater Capital: "This is a classic case of a defensive name executing well. The dividend hike and price cuts are smart plays—they reward long-term holders while chasing volume in a price-sensitive market. BofA's target bump feels justified."
• Sarah Chen, Consumer Analyst at Horizon Insights: "The Q4 numbers are solid, but I'm more intrigued by the pre-Super Bowl pricing strategy. It's an aggressive market-share grab that shows PepsiCo isn't just resting on its brand laurels. The real test will be if these volume gains sustain beyond the seasonal spike."
• David R. Miller, Independent Market Commentator: "A Neutral rating with a raised target? That's Wall Street doublespeak. They see the same inflation-squeezed consumer we all do. This price-cut move screams desperation for volume, not strategic genius. It's a short-term sugar rush for the stock, masking long-term margin pressures."
• Priya Sharma, Retail Strategist: "Integrating a major marketing moment like the Super Bowl with strategic pricing is savvy. It directly addresses consumer gripes about snackflation while driving traffic. This kind of operational agility is what separates the leaders in the staples sector right now."