PepsiCo (NASDAQ:PEP) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded PepsiCo from "buy" to "hold"; the stock's consensus rating across analysts is "Hold" with an average price target of $170.05 (8 buys, 11 holds, 1 sell).
• Q1 results beat expectations: PepsiCo reported $1.61 EPS and $19.44 billion in revenue, citing revived U.S. snack volumes after price cuts, and issued FY‑2026 EPS guidance of 8.465–8.628.
• Board authorized a $10 billion buyback (about 4.7% of shares) amid mixed broker moves on price targets—some raised targets while others trimmed—against a backdrop of roughly 73% institutional ownership.

PepsiCo (NASDAQ:PEP - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other brokerages have also issued reports on PEP. Piper Sandler boosted their target price on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research report on Thursday, March 12th. BNP Paribas Exane boosted their price target on shares of PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a report on Friday. HSBC boosted their price target on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a report on Friday. UBS Group lowered their price target on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Finally, Barclays lowered their price target on shares of PepsiCo from $160.00 to $154.00 and set an "equal weight" rating on the stock in a report on Tuesday. Eight 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. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $170.05.

PepsiCo Trading Down 0.4%

Shares of PEP stock opened at $157.67 on Friday. PepsiCo has a 1 year low of $127.60 and a 1 year high of $171.48. The firm's fifty day simple moving average is $159.79 and its 200 day simple moving average is $151.58. The firm has a market capitalization of $215.53 billion, a P/E ratio of 24.75, a price-to-earnings-growth ratio of 3.06 and a beta of 0.40. The company has a current ratio of 0.90, a quick ratio of 0.67 and a debt-to-equity ratio of 1.98.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, April 16th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the previous year, the firm posted $1.48 earnings per share. PepsiCo's revenue was up 8.5% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. As a group, sell-side analysts predict that PepsiCo will post 8.3 EPS for the current year.

PepsiCo announced that its board has authorized a stock buyback program on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On PepsiCo

Several large investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after purchasing an additional 1,612,652 shares during the last quarter. State Street Corp grew its holdings in shares of PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after purchasing an additional 1,079,970 shares during the last quarter. Auto Owners Insurance Co grew its holdings in shares of PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after purchasing an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of PepsiCo by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after purchasing an additional 360,936 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of PepsiCo by 1.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after purchasing an additional 295,955 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat and volume recovery — PepsiCo reported Q1 revenue of $19.44B and EPS of $1.61 (above consensus). Management said recent price cuts on snacks helped revive U.S. food volumes, supporting top-line momentum. PepsiCo tops quarterly revenue estimates as price cuts drive demand
• Positive Sentiment: Broker support rising — Several major banks raised price targets and kept bullish ratings after the quarter (examples: Goldman to $183, BNP Paribas to $195, JPMorgan to $178, Deutsche to $173), giving the stock additional analyst-driven upside. Goldman Sachs adjusts price target on PepsiCo
• Positive Sentiment: Brand and innovation initiatives — Management highlighted a Gatorade overhaul and new product push (including energy and hydration innovations) as part of a broader “hungry and thirsty for growth” strategy that could sustain the recovery. PepsiCo Q1 earnings beat: CEO talks Gatorade overhaul & more
• Neutral Sentiment: Analyst commentary mixed — While many firms raised targets, some analysts struck cautionary notes on margins and consumer trends; expect divergent views to continue driving intraday volatility. What analysts are saying about PepsiCo after its earnings report
• Negative Sentiment: Guidance and revenue outlook under the microscope — FY‑2026 EPS and revenue ranges were viewed as modest versus some consensus math (company-provided EPS range ~8.465–8.628 and revenue guidance slightly below some estimates), which trimmed some upside despite the beat. PepsiCo Analysts Boost Their Forecasts After Upbeat Q1 Earnings
• Negative Sentiment: Reputational/legal hit from Doritos controversy — Coverage notes past controversy cost the company materially; any renewed consumer backlash or litigation headlines could pressure sentiment. PepsiCo Lost Billions Amid a Doritos Controversy

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.