JPMorgan Chase & Co. Has Lowered Expectations for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• JPMorgan Chase & Co. cut its price target on PepsiCo from $178 to $170, while keeping an overweight rating on the stock. The new target still implies about 25.55% upside from the current share price.
• PepsiCo’s broader analyst picture remains mixed: the stock has a consensus Hold rating, with 8 Buy ratings, 11 Hold ratings, and 1 Sell rating. The average price target across analysts is $166.40.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion expected. Shares were trading down about 2.4% at $135.40 when the article was published.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target reduced by equities researchers at JPMorgan Chase & Co. from $178.00 to $170.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 25.55% from the stock's current price.

A number of other research analysts have also recently commented on the stock. Royal Bank Of Canada decreased their target price on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 9th. The Goldman Sachs Group upped their price target on shares of PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Barclays lifted their target price on PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research note on Wednesday, April 8th. Finally, HSBC lifted their target price on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, PepsiCo presently has a consensus rating of "Hold" and an average price target of $166.40.

PepsiCo Trading Down 2.4%

NASDAQ PEP opened at $135.40 on Wednesday. PepsiCo has a twelve month low of $132.47 and a twelve month high of $171.48. The stock's 50 day moving average is $147.56 and its 200 day moving average is $151.91. The firm has a market capitalization of $185.06 billion, a PE ratio of 21.26, a P/E/G ratio of 2.80 and a beta of 0.35. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. During the same quarter last year, the company earned $1.48 earnings per share. The business's revenue for the quarter was up 8.5% compared to the same quarter last year. Research analysts forecast that PepsiCo will post 8.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in PEP. Evergreen Advisors LLC purchased a new position in shares of PepsiCo during the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in PepsiCo during the 4th quarter valued at $26,000. Swiss RE Ltd. purchased a new stake in PepsiCo during the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo during the fourth quarter worth about $29,000. Finally, Networth Advisors LLC lifted its stake in PepsiCo by 2,857.1% in the 1st quarter. Networth Advisors LLC now owns 207 shares of the company's stock valued at $32,000 after buying an additional 200 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusual call option activity suggests traders are positioning for a move higher, with volume far above normal and signaling bullish sentiment ahead of the company’s upcoming earnings report.
• Positive Sentiment: PepsiCo India opened a second flavour manufacturing facility in Ujjain, backed by a Rs 1,266-crore investment, which supports capacity expansion and longer-term growth in a key international market. PepsiCo India opens ₹1,266 cr flavour manufacturing facility in Ujjain
• Positive Sentiment: A recent bullish note from 24/7 Wall St. argued PepsiCo has more than 20% upside, reinforcing the view that the stock could be undervalued relative to its fundamentals. Pepsi Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: PepsiCo’s driverless-truck and AI delivery push highlights continued logistics innovation, which could improve efficiency and distribution speed over time. PepsiCo and its fleet of driverless trucks
• Neutral Sentiment: PepsiCo remains in the spotlight ahead of its July 9 earnings release, with analysts expecting quarterly results that will help determine whether recent operational investments and demand trends are strong enough to support the current valuation. PepsiCo Likely To Report Higher Q2 Earnings
• Negative Sentiment: Erste Group Bank slightly lowered its FY2027 EPS estimate for PepsiCo to $9.11 from $9.14, adding a small but negative revision to the earnings outlook. Read More.
• Negative Sentiment: A trademark dispute over “Mtn Dew Rise” is headed to the U.S. Supreme Court, creating an overhang of legal uncertainty for the PepsiCo brand portfolio. US Supreme Court takes up Pepsi 'Mtn Dew Rise' trademark dispute

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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