PepsiCo (NASDAQ:PEP) Price Target Raised to $176.00 at HSBC

Key Points

• HSBC raised its price target to $176 (from $175) while maintaining a "hold" rating, implying roughly an 11.3% upside; the Street consensus target is $170.05 with 8 Buys, 11 Holds and 1 Sell.
• PepsiCo beat Q1 estimates, reporting $1.61 EPS vs $1.55 expected and $19.44B revenue (+8.5% YoY), and management reiterated FY26 EPS guidance of about $8.465–$8.628.
• Board approved a $10.0 billion share buyback (≈4.7% of shares) and used price cuts (up to ~15%) on key snacks to restore volume, though those discounts could compress margins if input costs pick up.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target hoisted by stock analysts at HSBC from $175.00 to $176.00 in a research note issued on Friday,MarketScreener reports. The brokerage presently has a "hold" rating on the stock. HSBC's price objective would indicate a potential upside of 11.28% from the company's previous close.

Several other research analysts have also recently weighed in on the company. Wall Street Zen raised PepsiCo from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. 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. TD Cowen increased their price target on PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research note on Friday, February 20th. Finally, Wells Fargo & Company increased their price objective on PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a report on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $170.05.

PepsiCo Trading Up 2.1%

NASDAQ PEP opened at $158.16 on Friday. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06. The firm has a market capitalization of $216.20 billion, a P/E ratio of 26.36, a PEG ratio of 2.99 and a beta of 0.40. The business has a fifty day simple moving average of $160.05 and a 200 day simple moving average of $151.46. PepsiCo has a 12 month low of $127.60 and a 12 month high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The company reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same period last year, the firm earned $1.48 earnings per share. The firm's revenue was up 8.5% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. On average, analysts predict that PepsiCo will post 8.3 EPS for the current fiscal year.

PepsiCo declared that its Board of Directors has approved a share repurchase plan on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to buy up to 4.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Institutional Trading of PepsiCo

Several large investors have recently bought and sold shares of the company. Auto Owners Insurance Co increased its stake in 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 acquiring an additional 48,923,629 shares during the last quarter. Norges Bank purchased a new position in PepsiCo during the fourth quarter worth $3,018,813,000. AQR Capital Management LLC grew its stake in shares of PepsiCo by 120.7% during the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company's stock valued at $830,902,000 after buying an additional 3,235,726 shares during the last quarter. Amundi grew its position in PepsiCo by 30.0% in the 3rd quarter. Amundi now owns 8,641,588 shares of the company's stock valued at $1,207,230,000 after acquiring an additional 1,995,362 shares during the last quarter. Finally, Vanguard Group Inc. increased its stake in 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 buying an additional 1,612,652 shares during the period. 73.07% of the stock is owned by institutional investors.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat — PepsiCo reported $1.61 EPS and $19.44B revenue, topping Street estimates and showing broad-based sales growth that signals the turnaround may be working. PepsiCo Q1 2026 Earnings Call Transcript
• Positive Sentiment: Price cuts drove demand — Discounts (up to ~15%) on Lay’s, Doritos and value brands helped North America foods volumes return to growth and materially lifted revenue. This validates management’s tactical pricing move to regain shoppers. Food companies are finally cutting prices. PepsiCo shows it’s worth it
• Positive Sentiment: Product & international momentum — Management highlighted new product initiatives (Gatorade revamp, new snack/DRINK SKUs) and continued strength in international markets and energy/prebiotic beverages, supporting upside beyond pricing actions. PepsiCo Q1 2026 Earnings Call Highlights
• Neutral Sentiment: Guidance reaffirmed but with nuance — PepsiCo reiterated FY26 EPS guidance (~8.465–8.628) while revenue guidance sits a bit below some consensus reads; that keeps the outlook intact but gives investors a mixed signal on near-term top-line ambition. Earnings Snapshot: PepsiCo tops Q1 estimates; reaffirms FY26 outlook
• Positive Sentiment: Market reaction & income appeal — Shares rallied after the print and dividend-focused publications note PepsiCo’s yield and “Dividend King” status look attractive after the pullback, drawing income-oriented buyers. Pepsi says price cuts and wellness push are bringing back customers — and the stock surges
• Negative Sentiment: Margin and sustainability risks — While price cuts are boosting volume and top line, they potentially compress margins if input costs or inflation re-accelerate; management warned inflationary pressures remain a risk. Despite Iran War’s Effects, PepsiCo Says Consumers Still Spending on Snacks
• Negative Sentiment: Corporate/legal noise — A recent EEOC settlement and activist-driven pressure mean ongoing execution scrutiny; not material to fundamentals today but worth monitoring for governance and cost impacts. PepsiCo Settles EEOC Lawsuit

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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