11:14 AM EDT, 09/25/2025 (MT Newswires) -- PepsiCo ( PEP ) is expected to have a challenging Q3 amid sluggish US trends, softness in some key international regions, and tariff costs, UBS said in a Thursday report.

"A challenging 3Q, with the debate likely to remain post the print," the report said. The results are due Oct. 9.

For Q3, UBS analysts expect organic sales growth of 1.9%, about 41 basis points below consensus, and EPS of $2.25, which is $0.02 below market expectations.

Still, they see a favorable setup beyond Q3.

"We believe PEP can continue to deliver organic growth in-line/above many multinational peers," the analysts said.

UBS kept its buy rating on the stock and a $170 price target.

Price: 141.29, Change: -0.88, Percent Change: -0.62