Wells Fargo & Company Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• Wells Fargo lowered PepsiCo’s price target from $140 to $135 while maintaining an “equal weight” rating, implying 8.46% upside from the reported $124.47 share price.
• Analyst sentiment remains cautious: PepsiCo has a consensus “Hold” rating, with 14 Holds, five Buys and one Sell, although the consensus price target is higher at $150.75.
• PepsiCo recently slightly beat quarterly EPS estimates and reported 6.4% year-over-year revenue growth, but its stock is trading near its 52-week low and faces concerns about growth, including weakness at Frito-Lay.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target dropped by investment analysts at Wells Fargo & Company from $140.00 to $135.00 in a report issued on Monday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would indicate a potential upside of 8.46% from the stock's current price.

Several other equities research analysts also recently commented on PEP. Royal Bank Of Canada cut their price objective on PepsiCo from $163.00 to $161.00 and set a "sector perform" rating for the company in a report on Friday, July 10th. UBS Group decreased their price objective on shares of PepsiCo from $159.00 to $145.00 and set a "buy" rating for the company in a research report on Friday. Evercore cut their target price on shares of PepsiCo from $150.00 to $135.00 in a research note on Wednesday, September 30th. Barclays dropped their price objective on PepsiCo from $142.00 to $133.00 and set an "equal weight" rating on the stock in a research note on Wednesday, September 30th. Finally, Sanford C. Bernstein set a $134.00 price objective on shares of PepsiCo in a research note on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $150.75.

PepsiCo Trading Down 1.1%

NASDAQ:PEP opened at $124.47 on Monday. The business's 50-day moving average price is $137.01 and its two-hundred day moving average price is $143.94. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The firm has a market capitalization of $169.89 billion, a price-to-earnings ratio of 16.34, a PEG ratio of 2.86 and a beta of 0.35. PepsiCo has a 1-year low of $125.16 and a 1-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 earnings per share for the quarter, topping analysts' consensus estimates of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. During the same period in the prior year, the business earned $0.92 EPS. The company's revenue for the quarter 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 expect that PepsiCo will post 8.56 earnings per share for the current year.

Insider Activity at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction that occurred 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 sale, the executive vice president owned 74,825 shares of the company's stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in PEP. Evergreen Advisors LLC acquired a new position in shares of PepsiCo during the 1st quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo in the fourth quarter valued at about $26,000. Montgomery Financial Services LLC acquired a new position in PepsiCo during the second quarter worth about $25,000. Networth Advisors LLC raised its stake in PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after acquiring an additional 200 shares in the last quarter. Finally, Vermillion Wealth Management Inc. lifted its holdings in shares of PepsiCo by 99.1% in the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock worth $34,000 after acquiring an additional 108 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Several investment articles characterize PepsiCo as an attractive long-term dividend investment. The company’s elevated yield, globally recognized snack and beverage brands, and potential for improving growth are cited as reasons to buy after the stock’s decline. Three Numbers That Explain Why I’m Buying PepsiCo
• Positive Sentiment: PepsiCo remains supported by its diversified portfolio, including Frito-Lay, Gatorade and other major global brands. Some analysts and commentators continue to view the company as a defensive consumer-staples holding with long-term income potential. Why This Dividend King Looks Like a Buy
• Neutral Sentiment: PepsiCo’s October 8 earnings release is the week’s main catalyst. Options markets imply an approximately 3.75% post-earnings move, potentially shifting about $6.46 billion in market value, indicating elevated event risk rather than a clear directional outlook. PepsiCo Q3 Earnings and Options-Implied Move
• Neutral Sentiment: Recent analyst commentary is mixed, with PepsiCo appearing among notable stock picks while other coverage highlights its underperformance relative to Coca-Cola. Investors are likely to compare PepsiCo’s results and outlook with broader consumer-staples trends.
• Negative Sentiment: JPMorgan downgraded PepsiCo from Overweight to Neutral, removing a source of bullish analyst support and reinforcing concerns about near-term growth and execution. JPMorgan Downgrades PepsiCo
• Negative Sentiment: Commentary has specifically flagged weakness at Frito-Lay, PepsiCo’s key snack business. Softer consumer demand and concerns about the division’s performance could weigh on earnings expectations and the company’s ability to deliver its fiscal 2026 EPS guidance. Jim Cramer Flags PepsiCo’s Frito-Lay Problem

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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