02:57 PM EST, 01/27/2025 (MT Newswires) -- PepsiCo's ( PEP ) Q4 earnings will be in line with consensus, but despite the recent stock recovery, investors remain cautious due to limited visibility on organic revenue growth trends, UBS said in a note Monday.

"While the shares may be reaching a level from a valuation perspective that appears too attractive to ignore, many also believe that it will take a sustained improvement in the data to drive confidence that organic revenue growth is heading in the right direction," the firm added.

UBS said that PepsiCo's ( PEP ) initial guidance for 2025 is likely to incorporate a wide range of outcomes due to gradual expected improvements in organic revenue trends and may include a low-end estimate below its long-term growth algorithm.

The firm said that Q4 volume performance will likely remain soft with a specific focus on organic sales trends for Frito-Lay North America.

UBS maintained its buy rating on PepsiCo's ( PEP ) stock with a price target of $175.

Price: 155.16, Change: +6.04, Percent Change: +4.05