Barclays Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• Barclays cut PepsiCo’s price target to $133 from $142, implying only 3.35% upside from the previous close and signaling a cautious outlook.
• Analyst sentiment remains largely neutral: 14 firms rate the stock Hold, compared with five Buys and one Sell, while the consensus price target is $151.70.
• PepsiCo’s shares opened at $128.69, near their one-year low, despite the company slightly beating quarterly earnings and revenue estimates; institutional investors own 73.07% of the stock.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price objective dropped by stock analysts at Barclays from $142.00 to $133.00 in a research report issued to clients and investors on Wednesday. Barclays's price target suggests a potential upside of 3.35% from the company's previous close.

Several other brokerages also recently commented on PEP. Citigroup lowered their price objective on PepsiCo from $145.00 to $142.00 and set a "neutral" rating for the company in a research note on Thursday, September 24th. Bank of America lowered their price target on PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. Jefferies Financial Group set a $138.00 target price on shares of PepsiCo in a research note on Tuesday. Evercore set a $150.00 price target on shares of PepsiCo in a report on Thursday, July 9th. Finally, Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research report on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $151.70.

PepsiCo Stock Up 0.1%

Shares of PEP opened at $128.69 on Wednesday. The firm has a 50 day simple moving average of $137.59 and a two-hundred day simple moving average of $144.63. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. PepsiCo has a one year low of $126.42 and a one year high of $171.48. The company has a market cap of $175.65 billion, a P/E ratio of 16.87, a P/E/G ratio of 2.71 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm's revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Research analysts forecast that PepsiCo will post 8.57 EPS for the current fiscal year.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.12% of the company's stock.

Institutional Trading of PepsiCo

A number of hedge funds have recently made changes to their positions in the stock. Onyx Bridge Wealth Group LLC raised its position in shares of PepsiCo by 2.5% in the first quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company's stock valued at $415,000 after purchasing an additional 66 shares during the period. Wilkerson Advisory Group LLC grew its holdings in PepsiCo by 3.3% in the 1st quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock valued at $317,000 after buying an additional 66 shares in the last quarter. Richards Merrill & Peterson Inc. boosted its position in shares of PepsiCo by 3.6% in the first quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock valued at $301,000 after acquiring an additional 67 shares during the period. Partners Wealth Management LLC raised its stake in PepsiCo by 3.5% in the 1st quarter. Partners Wealth Management LLC now owns 1,998 shares of the company's stock worth $310,000 after purchasing an additional 68 shares in the last quarter. Finally, Pittenger & Anderson Inc. raised its position in shares of PepsiCo by 0.3% in the first quarter. Pittenger & Anderson Inc. now owns 24,895 shares of the company's stock valued at $3,866,000 after buying an additional 69 shares in the last quarter. 73.07% of the stock is owned by institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo raised its annual dividend to $5.92, extending its record streak to 54 consecutive annual increases. At the referenced share price, a $10,000 investment would generate approximately $461 in annual dividend income, supporting the stock’s appeal to income-focused investors. Pepsi Just Extended Its Dividend Streak Again
• Positive Sentiment: The company plans to invest $1 billion in Colombia over five years, including production expansion and support for local farmers. The investment could strengthen PepsiCo’s long-term growth and regional operating footprint, although the near-term earnings impact is unclear. PepsiCo To Invest $1 Billion in Colombia
• Neutral Sentiment: PepsiCo’s third-quarter earnings report is approaching, with analysts expecting only marginal bottom-line improvement. Investors will be watching whether productivity measures can offset softer demand and higher costs. PepsiCo’s Quarterly Earnings Preview
• Negative Sentiment: J.P. Morgan downgraded PepsiCo from Overweight to Neutral and cut its price target from $170 to $138, citing weakness in Frito-Lay and the broader North American snack business. The firm expects PepsiCo to rely more heavily on productivity gains to meet its earnings guidance. JPMorgan Downgrades PepsiCo to Neutral
• Negative Sentiment: Deutsche Bank also cut PepsiCo to Hold and reduced its target to $138 from $155, adding to investor concerns about a complicated turnaround, elevated costs and uncertain growth prospects. Deutsche Bank Lowers PepsiCo Rating
• Negative Sentiment: Planned price increases on sodas, chips and dips could pressure affordability and volume, particularly as consumers remain price-sensitive. Analysts have described the move as a risk to PepsiCo’s demand recovery. PepsiCo Plans to Raise Prices

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay's, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company's operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.

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