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

Key Points

• Evercore lowered PepsiCo’s price target from $150 to $135, implying roughly 4.9% upside; the stock carries a consensus “Hold” rating with an average target of $151.70.
• PepsiCo recently beat quarterly expectations, reporting $2.20 in adjusted EPS and $24.18 billion in revenue, while revenue increased 6.4% year over year.
• Investor concerns include weakness in the North American snack business, elevated costs, planned price increases that could pressure demand, and several analysts’ recent rating or target cuts.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target reduced by analysts at Evercore from $150.00 to $135.00 in a note issued to investors on Wednesday. Evercore's price target would indicate a potential upside of 4.90% from the company's current price.

Several other research analysts have also weighed in on PEP. UBS Group set a $159.00 price target on PepsiCo in a research report on Thursday, July 9th. Jefferies Financial Group set a $138.00 price target on shares of PepsiCo in a report on Tuesday. Piper Sandler set a $176.00 price objective on shares of PepsiCo in a research note on Thursday, July 9th. Barclays cut their target price on shares of PepsiCo from $142.00 to $133.00 in a research report on Wednesday. Finally, Morgan Stanley lowered their price target on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, PepsiCo has a consensus rating of "Hold" and a consensus target price of $151.70.

PepsiCo Trading Up 0.1%

Shares of PepsiCo stock opened at $128.69 on Wednesday. The business has a fifty day simple moving average of $137.59 and a 200-day simple moving average of $144.63. The firm has a market cap of $175.65 billion, a price-to-earnings ratio of 16.87, a price-to-earnings-growth ratio of 2.71 and a beta of 0.35. PepsiCo has a fifty-two week low of $126.42 and a fifty-two week high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91.

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

Insider Transactions at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president owned 74,825 shares of the company's stock, valued at $10,441,080.50. The trade was a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.12% of the company's stock.

Institutional Trading of PepsiCo

Several hedge funds have recently added to or reduced their stakes in PEP. Onyx Bridge Wealth Group LLC grew its holdings in 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 during the period. Wilkerson Advisory Group LLC grew its holdings in shares of PepsiCo by 3.3% during the first quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock worth $317,000 after buying an additional 66 shares in the last quarter. Richards Merrill & Peterson Inc. lifted 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 worth $301,000 after purchasing an additional 67 shares in the last quarter. Partners Wealth Management LLC increased its position in shares of PepsiCo by 3.5% in the first quarter. Partners Wealth Management LLC now owns 1,998 shares of the company's stock valued at $310,000 after acquiring an additional 68 shares during the last quarter. Finally, Pittenger & Anderson Inc. grew its stake 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. Institutional investors own 73.07% of the company's stock.

Key Headlines Impacting PepsiCo

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

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.

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