TD Cowen Cuts PepsiCo (NASDAQ:PEP) Price Target to $145.00

Key Points

• TD Cowen lowered PepsiCo’s price target to $145 from $150 and kept a hold rating, implying only modest upside from the prior close.
• PepsiCo’s recent earnings beat expectations, with Q2 revenue of $24.18 billion and EPS of $2.20, but investors remain cautious because U.S. consumer weakness is pressuring the stock.
• Analyst views are mixed overall: PepsiCo has a consensus Hold rating and a consensus price target of $159.15, while several firms have recently trimmed their targets.

PepsiCo (NASDAQ:PEP - Get Free Report) had its target price dropped by equities research analysts at TD Cowen from $150.00 to $145.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price objective suggests a potential upside of 6.06% from the stock's previous close.

PEP has been the subject of several other research reports. The Goldman Sachs Group upped their price objective on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Royal Bank Of Canada cut their target price on PepsiCo from $163.00 to $161.00 and set a "sector perform" rating on the stock in a research report on Friday. BNP Paribas Exane decreased their target price on PepsiCo from $195.00 to $183.00 and set an "outperform" rating for the company in a research report on Wednesday. Evercore set a $150.00 price target on PepsiCo in a research note on Thursday. Finally, Sanford C. Bernstein set a $134.00 price target on PepsiCo in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $159.15.

PepsiCo Stock Down 0.8%

PEP stock opened at $136.72 on Friday. The stock has a market cap of $186.86 billion, a P/E ratio of 21.40, a PEG ratio of 2.87 and a beta of 0.36. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. PepsiCo has a twelve month low of $133.75 and a twelve month high of $171.48. The company's 50 day moving average is $145.78 and its two-hundred day moving average is $151.56.

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

Institutional Trading of PepsiCo

Hedge funds have recently made changes to their positions in the company. Redhawk Wealth Advisors Inc. lifted its position in PepsiCo by 223.0% in the second quarter. Redhawk Wealth Advisors Inc. now owns 9,312 shares of the company's stock valued at $1,261,000 after purchasing an additional 6,429 shares during the period. Community Financial Services Group LLC grew its holdings in PepsiCo by 7.2% in the second quarter. Community Financial Services Group LLC now owns 3,319 shares of the company's stock valued at $469,000 after purchasing an additional 223 shares during the last quarter. First Bank & Trust grew its stake in PepsiCo by 5.8% in the 2nd quarter. First Bank & Trust now owns 20,380 shares of the company's stock valued at $2,759,000 after acquiring an additional 1,119 shares during the last quarter. Shrier Wealth Management LLC grew its position in shares of PepsiCo by 3.5% in the second quarter. Shrier Wealth Management LLC now owns 13,330 shares of the company's stock valued at $1,805,000 after purchasing an additional 447 shares during the last quarter. Finally, Bay Rivers Group grew its holdings in PepsiCo by 15.3% during the 2nd quarter. Bay Rivers Group now owns 4,531 shares of the company's stock valued at $614,000 after buying an additional 600 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo beat second-quarter revenue estimates, with sales of $24.18 billion up 6.4% year over year, helped by strong international demand and improved volumes. PepsiCo beats revenue estimates as volumes improve globally
• Positive Sentiment: The company reaffirmed its full-year outlook and maintained FY2026 guidance, which suggests management still expects growth to hold up despite near-term volatility. PepsiCo Q2 Profit Surges, Core Margin Drops, Confirms FY26 View; Stock Down
• Neutral Sentiment: PepsiCo continues to offer an attractive dividend profile, and some commentary argues the stock looks more compelling after the pullback versus its historical valuation range. PepsiCo’s Dividend Could Turn Patience Into Real Profit
• Neutral Sentiment: BNP Paribas cut its price target to $183 from $195 but kept an outperform rating, while Wells Fargo lowered its target to $140 and moved to equal weight, signaling more caution on the near-term setup. This PepsiCo Analyst Is No Longer Bullish; Here Are Top 5 Downgrades For Friday
• Negative Sentiment: Wells Fargo lowered its price target on PEP from $150 to $140, reflecting concern that growth may slow and that the shares may struggle to re-rate quickly. PepsiCo had its price target lowered by Wells Fargo & Company
• Negative Sentiment: Management said high gas prices are keeping shoppers from visiting stores as often, which is hurting snack and drink purchases in North America and weighing on investor sentiment. PepsiCo Says High Gas Prices Are Keeping Shoppers From Buying Snacks and Drinks
• Negative Sentiment: Several reports noted that PepsiCo’s U.S. business is under strain from weaker consumer spending, with investors worried that the turnaround is taking longer than expected despite the earnings beat. Pepsi Earnings Beat Expectations. Why the Stock Is Dropping.

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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