Bank of America Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• Bank of America cut PepsiCo’s price target from $173 to $164 while keeping a neutral rating, citing a more cautious outlook. The new target still implies about 15.27% upside from the current share price.
• Overall analyst sentiment remains mixed: the stock has eight Buy ratings, eleven Hold ratings, and one Sell, with a consensus Hold and average target price of $167.55. Other firms have also trimmed or adjusted targets recently.
• PepsiCo’s latest earnings beat expectations, posting $1.61 EPS on $19.44 billion in revenue, both above estimates, and revenue rose 8.5% year over year. Despite that, shares have been under pressure and opened at $142.27 on Thursday.

PepsiCo (NASDAQ:PEP - Get Free Report) had its target price cut by equities research analysts at Bank of America from $173.00 to $164.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Bank of America's price target suggests a potential upside of 15.27% from the company's current price.

PEP has been the subject of a number of other research reports. TD Cowen reduced their target price on PepsiCo from $165.00 to $150.00 and set a "hold" rating on the stock in a report on Friday, June 12th. Piper Sandler dropped their price target on PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a report on Friday, June 12th. Wall Street Zen downgraded PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Barclays increased their target price on PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a report on Monday, April 20th. Finally, HSBC raised their target price on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, PepsiCo has an average rating of "Hold" and a consensus target price of $167.55.

PepsiCo Stock Up 0.2%

Shares of NASDAQ PEP opened at $142.27 on Thursday. PepsiCo has a 52-week low of $127.60 and a 52-week high of $171.48. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The business has a fifty day moving average of $148.99 and a two-hundred day moving average of $152.13. The stock has a market cap of $194.45 billion, a PE ratio of 22.33, a PEG ratio of 2.83 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm's revenue for the quarter was up 8.5% on a year-over-year basis. During the same quarter last year, the company posted $1.48 EPS. As a group, equities research analysts expect that PepsiCo will post 8.63 earnings per share for the current fiscal year.

Institutional Investors Weigh In On PepsiCo

Hedge funds and other institutional investors have recently made changes to their positions in the company. Ballast Advisors LLC increased its position in PepsiCo by 9.3% in the first quarter. Ballast Advisors LLC now owns 9,964 shares of the company's stock worth $1,547,000 after purchasing an additional 848 shares during the period. Dakota Community Bank & Trust NA lifted its position in PepsiCo by 8.5% during the 1st quarter. Dakota Community Bank & Trust NA now owns 2,235 shares of the company's stock valued at $347,000 after purchasing an additional 176 shares during the period. Evansbrook LLC boosted its stake in shares of PepsiCo by 13.5% in the 1st quarter. Evansbrook LLC now owns 3,179 shares of the company's stock valued at $494,000 after purchasing an additional 377 shares during the last quarter. Wealthquest Corp bought a new position in shares of PepsiCo in the 1st quarter valued at about $219,000. Finally, Parallel Advisors LLC grew its position in shares of PepsiCo by 6.2% during the 1st quarter. Parallel Advisors LLC now owns 57,425 shares of the company's stock worth $8,918,000 after buying an additional 3,339 shares during the period. 73.07% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to draw bullish valuation commentary, with one piece arguing the stock could offer meaningful upside from current levels if its global beverages and snacks business keeps performing and productivity gains continue. PepsiCo (PEP) Stock Weighing DCF Upside Against Recent Share Price Weakness
• Positive Sentiment: Analysts and market commentators remain constructive on PepsiCo’s medium-term earnings profile, with expectations for another quarter of modest EPS growth ahead of its upcoming results. PepsiCo's Q2 2026 Earnings: What to Expect
• Positive Sentiment: PepsiCo’s high-profile partnership activity, including its billion-dollar tie-in with F1 Academy and women’s sports marketing, highlights brand-building efforts that could support long-term engagement and revenue growth. Susie Wolff on F1's Future: Inside PepsiCo's billion dollar partnership
• Neutral Sentiment: Bank of America reiterated a Hold rating and trimmed its price target to $164, citing a slower-than-expected PFNA recovery; this signals caution, but not a major shift in the investment case. PepsiCo: Slower PFNA Recovery Prompts Price Target Cut to $164, Supporting Neutral Rating
• Neutral Sentiment: Several articles were informational rather than market-moving, including PepsiCo executive commentary on hiring and a QR-code ingredient rollout, which are unlikely to affect the stock materially on their own.
• Negative Sentiment: Recent coverage notes PepsiCo’s share price weakness over the past week and month, reflecting ongoing investor concern about valuation and near-term momentum. PepsiCo (PEP) Stock Weighing DCF Upside Against Recent Share Price Weakness

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay's, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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