PepsiCo (NASDAQ:PEP) Stock Price Target Lowered at Barclays

Key Points

• Barclays lowered PepsiCo’s price target from $133 to $126 while maintaining an “equal weight” rating, implying roughly 0.6% downside from the stock’s $126.72 price.
• Analyst sentiment remains mixed but leans toward “Hold”: five analysts rate PepsiCo a Buy, 14 rate it Hold and one rates it Sell, with a consensus price target of $145.50.
• PepsiCo exceeded quarterly expectations, reporting $2.34 in earnings per share and $25.27 billion in revenue, while shares remain near their 52-week low despite the company’s ongoing focus on functional beverages, healthier snacks and zero-sugar products.

PepsiCo (NASDAQ:PEP - Get Free Report) had its target price lowered by Barclays from $133.00 to $126.00 in a report issued on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's price target would indicate a potential downside of 0.57% from the stock's current price.

Other equities analysts also recently issued research reports about the company. The Goldman Sachs Group reiterated a "buy" rating and issued a $165.00 target price on shares of PepsiCo in a report on Thursday. Citigroup reaffirmed a "buy" rating on shares of PepsiCo in a research note on Friday. TD Cowen reduced their price objective on PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a research report on Monday, September 28th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $132.00 target price on shares of PepsiCo in a research note on Friday. Finally, JPMorgan Chase & Co. dropped their target price on PepsiCo from $138.00 to $137.00 and set a "neutral" rating on the stock in a research report on Friday. Five research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, PepsiCo currently has a consensus rating of "Hold" and a consensus price target of $145.50.

PepsiCo Stock Up 0.6%

NASDAQ:PEP traded up $0.76 during trading hours on Monday, hitting $126.72. 4,361,116 shares of the stock traded hands, compared to its average volume of 8,070,328. The firm has a 50 day moving average price of $135.48 and a 200 day moving average price of $143.00. The firm has a market cap of $172.97 billion, a price-to-earnings ratio of 15.91, a PEG ratio of 2.92 and a beta of 0.35. PepsiCo has a fifty-two week low of $123.47 and a fifty-two week high of $171.48. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Thursday, October 8th. The company reported $2.34 EPS for the quarter, topping the consensus estimate of $2.29 by $0.05. The business had revenue of $25.27 billion during the quarter, compared to analysts' expectations of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. PepsiCo's revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.29 earnings per share. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. Equities research analysts anticipate that PepsiCo will post 8.40 earnings per share for the current year.

Insider Transactions at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the firm's 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 transaction, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Onyx Bridge Wealth Group LLC boosted its stake in shares of PepsiCo by 2.5% during 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 in the last quarter. Wilkerson Advisory Group LLC increased its stake in shares of PepsiCo by 3.3% in the first 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 during the period. Richards Merrill & Peterson Inc. increased its stake 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 buying an additional 67 shares during the period. Partners Wealth Management LLC raised its holdings in PepsiCo by 3.5% in the 1st quarter. Partners Wealth Management LLC now owns 1,998 shares of the company's stock valued at $310,000 after buying an additional 68 shares during the last quarter. Finally, Pittenger & Anderson Inc. raised its holdings in PepsiCo by 0.3% in the 1st 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 during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s expansion of functional beverages, protein-rich snacks and zero-sugar products could help capture wellness-driven demand and create new growth avenues. Can PepsiCo’s Functional Portfolio Capture Wellness Demand?
• Positive Sentiment: Management is emphasizing a turnaround in soft drinks, including plans to add functional benefits to Poppi, the recently acquired better-for-you soda brand. This may strengthen PepsiCo’s position in faster-growing beverage categories. PepsiCo puts urgency into turning around soft drinks
• Positive Sentiment: Several valuation-focused reports describe PEP as potentially undervalued after its prolonged decline. Its approximately 4.7% dividend yield and reputation for profitability may appeal to income-oriented investors. A 4.7% dividend yield makes the stock look cheap
• Positive Sentiment: PepsiCo was included among companies receiving A+ profitability grades, reinforcing the view that its broad portfolio and cash-generating brands remain fundamental strengths. Stocks with A+ profitability grades

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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