Piper Sandler Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• Piper Sandler cut its price target on PepsiCo from $181 to $178, though that still implies upside from the current share price.
• Wall Street remains mixed on PepsiCo: the stock carries a consensus Hold rating with an average price target of $167.35, based on 8 Buy, 11 Hold, and 1 Sell ratings.
• PepsiCo’s latest earnings beat expectations, posting $1.61 EPS on $19.44 billion in revenue, while analysts still expect $8.63 EPS for the full year.

PepsiCo (NASDAQ:PEP - Get Free Report) had its price target decreased by equities research analysts at Piper Sandler from $181.00 to $178.00 in a research report issued to clients and investors on Friday,MarketScreener reports. Piper Sandler's price objective indicates a potential upside of 23.89% from the company's current price.

A number of other research firms have also commented on PEP. HSBC boosted their price objective on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a research note on Friday, April 17th. Evercore lifted their price objective on PepsiCo from $165.00 to $170.00 in a research report on Friday, April 17th. Sanford C. Bernstein started coverage on shares of PepsiCo in a research report on Thursday. They set a "market perform" rating and a $143.00 price target for the company. Wall Street Zen cut shares of PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on PepsiCo from $169.00 to $173.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $167.35.

PepsiCo Stock Performance

Shares of PEP opened at $143.68 on Friday. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company's fifty day moving average price is $151.32 and its 200 day moving average price is $152.42. The company has a market capitalization of $196.37 billion, a PE ratio of 22.61, a price-to-earnings-growth ratio of 2.62 and a beta of 0.35. PepsiCo has a one year low of $127.60 and a one year high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. 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 9.15% and a return on equity of 56.61%. The firm had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. During the same period in the prior year, the firm earned $1.48 EPS. The business's revenue was up 8.5% on a year-over-year basis. As a group, analysts expect that PepsiCo will post 8.63 earnings per share for the current year.

Institutional Investors Weigh In On PepsiCo

Several institutional investors have recently bought and sold shares of PEP. Cypress Capital Management LLC WY lifted its position in shares of PepsiCo by 8.3% in the fourth quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock worth $121,000 after purchasing an additional 64 shares in the last quarter. United Bank increased its stake in PepsiCo by 3.9% in the 4th quarter. United Bank now owns 1,717 shares of the company's stock valued at $246,000 after buying an additional 65 shares during the last quarter. Onyx Bridge Wealth Group LLC boosted its stake in shares of PepsiCo by 2.5% during the 1st quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company's stock worth $415,000 after buying an additional 66 shares during the last quarter. Wilkerson Advisory Group LLC increased its position in shares of PepsiCo by 3.3% in the first quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock valued at $317,000 after acquiring an additional 66 shares during the last quarter. Finally, Richards Merrill & Peterson Inc. raised its stake in shares of PepsiCo by 3.6% during the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock worth $301,000 after purchasing an additional 67 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is expanding autonomous truck use in its supply chain through a multiyear partnership with Gatik, aiming to boost capacity and improve efficiency in difficult-to-staff transportation routes. PepsiCo expanding autonomous truck use in its supply chain
• Positive Sentiment: PepsiCo is partnering with Compeer Financial on a pilot strip-till equipment financing program that helps farmers adopt soil-conservation practices, reinforcing the company’s sustainability positioning and farm-supply relationships. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Positive Sentiment: PepsiCo executives highlighted women’s sports as a key growth driver, suggesting the company sees fresh marketing and sponsorship opportunities to deepen brand engagement. BIS: PepsiCo’s Carolyn Braff on women’s sports being a key growth driver
• Neutral Sentiment: Several articles expanded on PepsiCo’s driverless freight rollout, describing it as a large-scale deployment across Texas, Arizona, and Arkansas; while strategically interesting, the immediate stock impact is likely limited unless it translates into measurable cost savings. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Neutral Sentiment: Analyst commentary trimmed FY2027 EPS estimates only marginally, keeping the longer-term earnings outlook broadly intact versus consensus. PepsiCo analyst estimate update
• Negative Sentiment: PepsiCo’s shares remain below their 50-day and 200-day moving averages, and the stock has been under pressure recently, which may signal that investors still have reservations about growth and valuation. PepsiCo stock overview

PepsiCo Company Profile

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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