PepsiCo (NASDAQ:PEP) Price Target Lowered to $142.00 at Citigroup

Key Points

• Citigroup lowered PepsiCo’s price target from $145 to $142 while maintaining a neutral rating; the new target implies approximately 9.1% upside from $130.18.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $156.65. Seven analysts rate the stock a Buy, 12 a Hold and one a Sell.
• PepsiCo’s latest quarter modestly exceeded expectations, reporting $2.20 in EPS and $24.18 billion in revenue, while revenue increased 6.4% year over year; analysts expect about $8.57 in EPS for the current year.

PepsiCo (NASDAQ:PEP - Get Free Report) had its target price cut by Citigroup from $145.00 to $142.00 in a note issued to investors on Thursday. The brokerage presently has a "neutral" rating on the stock. Citigroup's price target points to a potential upside of 9.08% from the company's current price.

Several other equities research analysts have also commented on PEP. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research note on Monday, July 6th. TD Cowen reissued a "hold" rating on shares of PepsiCo in a research note on Friday, August 28th. Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a report on Friday, July 10th. Evercore set a $150.00 target price on PepsiCo in a research note on Thursday, July 9th. Finally, Bank of America reduced their target price on PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a research note on Thursday, June 25th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $156.65.

PepsiCo Price Performance

NASDAQ:PEP opened at $130.18 on Thursday. The stock has a market cap of $177.68 billion, a P/E ratio of 17.06, a PEG ratio of 2.76 and a beta of 0.35. The company has a fifty day moving average price of $138.25 and a 200 day moving average price of $145.53. 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 $127.98 and a one year high of $171.48.

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

Insider Buying and Selling at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the firm's stock in a transaction on 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 directly owned 74,825 shares of the company's stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of PEP. Onyx Bridge Wealth Group LLC increased its position in PepsiCo by 2.5% in the first quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company's stock worth $415,000 after buying an additional 66 shares during the period. Wilkerson Advisory Group LLC lifted its position 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 acquiring an additional 66 shares in the last quarter. Richards Merrill & Peterson Inc. boosted its position in PepsiCo by 3.6% in the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock valued at $301,000 after buying an additional 67 shares during the period. Partners Wealth Management LLC lifted its stake in shares of PepsiCo by 3.5% during 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 during the period. 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 hedge funds and other institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusually strong options activity provided a bullish trading signal: investors purchased 48,807 call options, approximately 62% above the average volume. This may indicate expectations for a rebound, although options activity is speculative rather than a fundamental catalyst.
• Positive Sentiment: Analysts and market commentators highlighted PepsiCo’s valuation and dividend appeal after the stock’s decline from its 52-week high. The company’s established brands, defensive consumer-staples profile and expected fiscal 2026 EPS of about $8.57 could support upside if sentiment improves. Prediction: This Out-of-Favor Dividend Stock Could Have Significant Upside
• Positive Sentiment: PepsiCo is expanding zero-sugar beverages through product innovation, pricing and broad distribution, a strategy that could address changing consumer preferences and create a new avenue for growth. Can Zero Sugar Drinks Fuel PepsiCo’s Next Growth Phase?
• Positive Sentiment: PepsiCo reaffirmed its commitment to investment, local talent and partnerships in Saudi Arabia, supporting its long-term international presence and regional relationships. PepsiCo Reaffirms Saudi Arabia Commitment
• Neutral Sentiment: PepsiCo’s former chief financial officer, Jamie Caulfield, was elected to Kontoor Brands’ board. The appointment has no direct operational or financial impact on PepsiCo. Kontoor Brands Elects New Directors
• Neutral Sentiment: PepsiCo is exploring paper-based drink packaging, which could strengthen sustainability credentials but may also involve higher costs and execution risks. Paper Drink Bottles
• Negative Sentiment: PepsiCo is reportedly discontinuing ProNutro in South Africa after 64 years, a brand reduction that could weigh on local sales and reinforces concerns about portfolio rationalization. PepsiCo Discontinues ProNutro
• Negative Sentiment: Reports of manufacturing layoffs involving PepsiCo add to concerns about restructuring, weaker demand or efforts to reduce costs. While potentially beneficial to margins over time, layoffs can signal near-term operating pressure. Factory Fallout and Manufacturing Layoffs

About PepsiCo

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.