PepsiCo (NASDAQ:PEP) Stock Rating Upgraded by Freedom Broker

Key Points

• Freedom Broker upgraded PepsiCo from “hold” to “strong buy,” although the broader analyst consensus remains “hold,” with a $145.50 average price target.
• PepsiCo’s latest quarter exceeded expectations, with $2.34 adjusted EPS versus $2.29 expected and revenue of $25.27 billion, up 5.6% year over year. Management’s fiscal 2026 EPS guidance is $8.344–$8.425.
• Shares opened at $126.68, near their 52-week low, as investors weigh the stock’s valuation and roughly 4.7% dividend yield against margin pressure, cautious consumers, weaker North American beverages demand and analyst target cuts.

PepsiCo (NASDAQ:PEP - Get Free Report) was upgraded by investment analysts at Freedom Broker from a "hold" rating to a "strong-buy" rating in a research note issued on Saturday, Zacks reports.

PEP has been the topic of a number of other reports. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $132.00 price objective on shares of PepsiCo in a report on Friday. TD Cowen reduced their target price on shares of PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a research note on Monday, September 28th. Bank of America lowered their target price on PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a report on Thursday, June 25th. The Goldman Sachs Group reissued a "buy" rating and issued a $165.00 price target on shares of PepsiCo in a research note on Thursday. Finally, Piper Sandler dropped their price target on PepsiCo from $176.00 to $140.00 and set an "overweight" rating on the stock in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $145.50.

PepsiCo Price Performance

NASDAQ PEP opened at $126.68 on Friday. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. The stock has a market cap of $172.63 billion, a price-to-earnings ratio of 15.91, a PEG ratio of 2.92 and a beta of 0.35. The business has a 50 day simple moving average of $135.22 and a 200 day simple moving average of $142.83. PepsiCo has a 52-week low of $123.47 and a 52-week high of $171.48.

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

Insiders Place Their Bets

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the business's stock in a transaction that occurred 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 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 document filed with the Securities & Exchange Commission, which is available through this link. 0.12% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PepsiCo

Several large investors have recently made changes to their positions in PEP. Evergreen Advisors LLC purchased a new position in PepsiCo during the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of PepsiCo during the fourth quarter valued at about $26,000. Montgomery Financial Services LLC purchased a new stake in shares of PepsiCo in the second quarter worth about $25,000. Networth Advisors LLC lifted its holdings in shares of PepsiCo by 2,857.1% in the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after buying an additional 200 shares in the last quarter. Finally, Vermillion Wealth Management Inc. boosted its position in shares of PepsiCo by 99.1% in the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock valued at $34,000 after acquiring an additional 108 shares during the period. Institutional investors and hedge funds 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’s third-quarter revenue increased 5.6% year over year to approximately $25.3 billion, while adjusted EPS exceeded analyst expectations. The company also raised prices on some products, which could help offset inflation and cost pressures. PepsiCo Q3 revenue and outlook
• Positive Sentiment: PepsiCo is expanding functional beverages, protein-rich snacks and zero-sugar products to capture demand for healthier and wellness-oriented offerings. Its Poppi acquisition is also being positioned as part of a soft-drink turnaround strategy. PepsiCo functional portfolio
• Positive Sentiment: Some investors view PEP as inexpensive after its prolonged decline, citing a dividend yield near 4.7%, strong brands and potentially attractive long-term cash-flow value. PepsiCo also received an A+ profitability grade in one screening report. PepsiCo dividend valuation
• Neutral Sentiment: PepsiCo raised roughly €999 million through euro-denominated senior notes. The financing improves liquidity but increases debt and interest obligations as the company faces pressure to improve margins. PepsiCo euro bond offering
• Neutral Sentiment: CEO Ramon Laguarta said PepsiCo does not plan to separate its snacks and beverage businesses, maintaining the company’s integrated strategy despite activist investor pressure.
• Negative Sentiment: Barclays lowered its PEP price target from $133 to $126 and assigned an “equal weight” rating, implying limited near-term upside. Goldman Sachs and other analysts also reduced their targets amid inflation, cost pressures and concerns about the earnings outlook. Goldman lowers PepsiCo target
• Negative Sentiment: PepsiCo’s reduced forecast and ongoing pressure in North American beverages have weakened investor confidence. Cautious consumers, higher costs and the need to improve margins remain key risks.
• Negative Sentiment: An Indian court refused relief in a labeling dispute involving Sting, preventing PepsiCo from labeling new bottles as an “energy drink,” creating a regulatory and branding headwind in that market. PepsiCo Sting labeling case

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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