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

Key Points

• Citigroup lowered PepsiCo’s price target to $135 from $142 while maintaining a “neutral” rating; the broader analyst consensus is “Hold” with a $145.85 target.
• PepsiCo shares fell 1.8% to $125.97, near their 52-week low of $123.47, amid concerns about North American weakness, declining U.S. beverage volumes and pressure from higher prices.
• The company exceeded quarterly expectations with $2.34 adjusted EPS and $25.27 billion in revenue, but its fiscal 2026 EPS guidance of $8.344–$8.425 is below analyst forecasts of about $8.56.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target dropped by research analysts at Citigroup from $142.00 to $135.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's price target would indicate a potential upside of 7.17% from the company's current price.

Other analysts also recently issued research reports about the stock. Royal Bank Of Canada dropped their price target on shares of PepsiCo from $161.00 to $150.00 and set a "sector perform" rating on the stock in a report on Tuesday. BNP Paribas Exane dropped their price objective on shares of PepsiCo from $161.00 to $157.00 and set an "outperform" rating on the stock in a report on Friday. Morgan Stanley set a $145.00 price target on shares of PepsiCo in a research report 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 note on Monday, September 28th. Finally, Weiss Ratings downgraded PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, September 24th. Five equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $145.85.

PepsiCo Stock Down 1.8%

Shares of PEP traded down $2.37 during mid-day trading on Friday, reaching $125.97. The company had a trading volume of 9,844,786 shares, compared to its average volume of 8,079,681. PepsiCo has a 52 week low of $123.47 and a 52 week high of $171.48. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The company has a market capitalization of $171.94 billion, a price-to-earnings ratio of 16.51, a price-to-earnings-growth ratio of 2.81 and a beta of 0.35. The firm has a 50-day moving average price of $135.75 and a 200 day moving average price of $143.17.

PepsiCo (NASDAQ:PEP - Get Free Report) last released 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 for the quarter, compared to the consensus estimate of $24.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.29 earnings per share. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. On average, sell-side analysts forecast that PepsiCo will post 8.56 EPS for the current year.

Insider Activity at PepsiCo

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 value of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares of the company's stock, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On PepsiCo

A number of hedge funds have recently bought and sold shares of PEP. BlackRock Inc. increased its position in PepsiCo by 2.1% during the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock valued at $16,015,363,000 after acquiring an additional 2,440,377 shares during the last quarter. State Street Corp increased its holdings in PepsiCo by 1.7% during the second quarter. State Street Corp now owns 60,406,932 shares of the company's stock valued at $8,179,099,000 after buying an additional 987,582 shares during the period. Auto Owners Insurance Co raised its stake in PepsiCo by 14,857.8% in the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after buying an additional 48,923,629 shares in the last quarter. Bank of America Corp DE lifted its holdings in PepsiCo by 0.6% during the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock worth $3,305,146,000 after buying an additional 133,325 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in PepsiCo by 4.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company's stock worth $1,600,114,000 after purchasing an additional 549,336 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded third-quarter expectations, reporting adjusted EPS of $2.34 versus a $2.29 consensus and revenue of $25.27 billion, up 5.6% year over year. International growth, pricing and healthier snack products helped offset domestic weakness. PepsiCo beats third-quarter expectations but cuts profit outlook
• Positive Sentiment: The company plans additional cost reductions and investments to support its North American turnaround. It also completed a $746.24 million repurchase of 5 million shares, providing support through capital returns. Is PepsiCo a Bargain Following Its Buyback?
• Positive Sentiment: UBS said the valuation discount appears excessive relative to PepsiCo’s recovery potential, while maintaining an attractive risk-reward view. BNP Paribas Exane retained an “outperform” rating despite lowering its price target to $157. UBS says Pepsi offers attractive risk-reward
• Neutral Sentiment: PepsiCo is raising prices on Doritos, Ruffles, SunChips and some beverages by single-digit percentages. The move may help offset inflation and input costs, but could further pressure volumes as consumers seek cheaper options. PepsiCo raising prices on snacks and sodas
• Negative Sentiment: PepsiCo reduced its 2026 earnings outlook to $8.344–$8.425 per share, below the roughly $8.55 analyst consensus, citing higher costs and persistent North American weakness. Management also warned that North American margins may remain pressured into the fourth quarter. North America weakness drives guidance cut
• Negative Sentiment: U.S. soda volumes declined, and analysts warn PepsiCo is losing beverage momentum and potentially market share to Coca-Cola. The slower turnaround, changing consumer preferences and higher prices are raising concerns about volume recovery and 2027 growth. Pepsi soda sales decline amid consumer shift

About PepsiCo

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.

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.