PepsiCo (NASDAQ:PEP) Given New $140.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo cut PepsiCo’s price target to $140 from $150 while keeping an equal weight rating, implying only modest upside from the prior close.
• Several other analysts also lowered targets recently, and the broader Wall Street view remains cautious with a Hold consensus and a $160.50 average price target.
• PepsiCo’s latest quarterly results were solid, with EPS of $2.20 and revenue of $24.18 billion both slightly beating expectations, helped by strong international demand.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target dropped by research analysts at Wells Fargo & Company from $150.00 to $140.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 1.55% from the stock's previous close.

Other analysts have also recently issued research reports about the stock. Bank of America lowered their price objective on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. Jefferies Financial Group set a $162.00 target price on PepsiCo in a research note on Thursday, June 25th. UBS Group set a $159.00 price target on PepsiCo in a report on Thursday. Deutsche Bank Aktiengesellschaft dropped their price target on PepsiCo from $173.00 to $168.00 and set a "buy" rating on the stock in a research report on Thursday, June 18th. Finally, Evercore set a $150.00 price objective on PepsiCo in a report on Thursday. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $160.50.

PepsiCo Stock Performance

Shares of NASDAQ:PEP opened at $137.86 on Friday. The firm's 50 day simple moving average is $145.78 and its 200 day simple moving average is $151.56. PepsiCo has a fifty-two week low of $133.63 and a fifty-two week high of $171.48. The company has a market capitalization of $188.42 billion, a price-to-earnings ratio of 21.64, a P/E/G ratio of 2.87 and a beta of 0.36. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.19 by $0.01. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm had revenue of $24.18 billion during the quarter, compared to analysts' expectations of $23.95 billion. During the same quarter in the previous year, the company earned $0.92 earnings per share. The business's revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, sell-side analysts forecast that PepsiCo will post 8.62 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in shares of PepsiCo by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares during the last quarter. State Street Corp raised its stake in PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after acquiring an additional 1,079,970 shares during the period. Auto Owners Insurance Co lifted its holdings in PepsiCo by 14,857.8% during the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after purchasing an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC boosted its position in PepsiCo by 1.1% during the fourth 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 period. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of PepsiCo by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock valued at $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: PepsiCo reported second-quarter revenue of $24.18 billion, above estimates, with adjusted EPS of $2.20 also narrowly topping expectations. PepsiCo’s NASDAQ: PEP Q2 CY2026 Sales Beat Estimates
• Positive Sentiment: International demand remained strong and helped offset weakness in the U.S., supporting the company’s overall sales growth and easing some concerns about the long-term turnaround. PepsiCo Q2 Earnings Beat on Volume Gains & International Strength

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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