Citigroup Has Lowered Expectations for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• Citigroup cut PepsiCo’s price target from $182 to $170, though it kept a buy rating on the stock. The new target still implies about 19.5% upside from the current share price.
• Other analysts remain mixed on PepsiCo: recent target changes ranged from raises to cuts, and MarketBeat says the stock currently has an overall Hold consensus with an average target price of $166.95.
• PepsiCo recently posted better-than-expected quarterly results, beating EPS and revenue estimates, even as shares traded around $142.27 and analysts forecast $8.63 EPS for the full fiscal year.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target decreased by equities research analysts at Citigroup from $182.00 to $170.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The firm presently has a "buy" rating on the stock. Citigroup's price objective points to a potential upside of 19.49% from the stock's current price.

A number of other equities analysts also recently weighed in on PEP. HSBC boosted their target price on shares of PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday, April 17th. BNP Paribas Exane upped their target price on shares of PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a report on Friday, April 17th. Rothschild & Co Redburn raised their target price on shares of PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Piper Sandler lowered their price target on PepsiCo from $181.00 to $178.00 and set an "overweight" rating on the stock in a research report on Friday, June 12th. Finally, Barclays upped their price objective on PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research note on Monday, April 20th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $166.95.

PepsiCo Trading Up 0.2%

Shares of NASDAQ PEP opened at $142.27 on Thursday. PepsiCo has a 1-year low of $127.60 and a 1-year high of $171.48. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The company has a 50-day moving average of $148.99 and a two-hundred day moving average of $152.13. The company has a market cap of $194.45 billion, a PE ratio of 22.33, a P/E/G ratio of 2.83 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. The company 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%. PepsiCo's revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.48 EPS. As a group, equities analysts expect that PepsiCo will post 8.63 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Evergreen Advisors LLC bought a new stake in PepsiCo during the first quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of PepsiCo during the 4th quarter valued at approximately $26,000. Swiss RE Ltd. acquired a new stake in PepsiCo in the fourth quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new stake in shares of PepsiCo during the fourth quarter worth $29,000. Finally, Imprint Wealth LLC bought a new position in shares of PepsiCo in the 3rd quarter valued at $31,000. Institutional investors own 73.07% of the company's stock.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Negative Sentiment: Bank of America lowered its price target on PepsiCo to $164 from $173, citing a slower-than-expected PFNA recovery and reinforcing a neutral stance on the stock. Bank of America lowers PepsiCo target to $164
• Negative Sentiment: A separate analyst note from Bank of America Securities also pointed to slower PFNA recovery as the reason for its target cut, which may weigh on sentiment around near-term growth expectations. TipRanks analyst note on PepsiCo target cut
• Positive Sentiment: Some recent commentary still sees PepsiCo as undervalued relative to long-term cash flow and earnings power, with articles arguing the stock has upside from current levels despite recent share weakness. Yahoo Finance valuation discussion
• Positive Sentiment: One bullish piece highlighted a path toward a higher share price over time based on World Cup activation, productivity savings, and other growth drivers, which could support long-term sentiment. 24/7 Wall St. bullish PepsiCo article
• Neutral Sentiment: Several other headlines were largely business or brand-focused, including PepsiCo’s marketing tie-ins around Formula One and women’s sports, plus an APAC CEO interview about hiring and AI-era leadership. These are more informative than stock-moving in the near term. PepsiCo partnership discussion

About PepsiCo

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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