The Goldman Sachs Group Issues Positive Forecast for PepsiCo (NASDAQ:PEP) Stock Price

Key Points

• The Goldman Sachs Group raised its price target on PepsiCo to $183 (from $180) and keeps a "buy" rating, implying about a 15.7% upside from the current share price.
• PepsiCo beat Q1 estimates with $1.61 EPS (vs. $1.55 expected) and $19.44B revenue, reaffirmed FY‑2026 EPS guidance (~8.465–8.628) and authorized a $10 billion share buyback (≈4.7% of shares).
• Price cuts and new product/international momentum have helped volumes recover, but those discounts risk compressing margins if input costs rebound, and investors should monitor ongoing legal and activist-driven governance noise.

PepsiCo (NASDAQ:PEP - Get Free Report) had its target price raised by research analysts at The Goldman Sachs Group from $180.00 to $183.00 in a research note issued on Friday,MarketScreener reports. The brokerage presently has a "buy" rating on the stock. The Goldman Sachs Group's price objective indicates a potential upside of 15.70% from the stock's current price.

Several other brokerages also recently issued reports on PEP. Argus raised PepsiCo to a "hold" rating in a research note on Tuesday, February 17th. Piper Sandler upped their target price on PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. Wells Fargo & Company raised their price target on shares of PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a report on Wednesday, February 4th. Evercore upped their price objective on shares of PepsiCo from $165.00 to $170.00 in a research note on Friday. Finally, UBS Group decreased their target price on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Eight investment 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, the company presently has an average rating of "Hold" and a consensus price target of $170.05.

PepsiCo Stock Performance

Shares of PEP opened at $158.16 on Friday. PepsiCo has a one year low of $127.60 and a one year high of $171.48. The company has a 50-day moving average of $160.05 and a two-hundred day moving average of $151.46. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The stock has a market cap of $216.20 billion, a price-to-earnings ratio of 26.36, a PEG ratio of 2.99 and a beta of 0.40.

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

PepsiCo announced that its board has initiated a share buyback plan on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Institutional Trading of PepsiCo

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Captrust Financial Advisors grew its stake in PepsiCo by 3.6% in the 3rd quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock valued at $77,916,000 after buying an additional 19,218 shares during the last quarter. Clayton Financial Group LLC bought a new stake in PepsiCo during the third quarter valued at about $872,000. Murphy Middleton Hinkle & Parker Inc. grew its position in shares of PepsiCo by 622.3% in the fourth quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock valued at $5,110,000 after purchasing an additional 30,674 shares during the last quarter. Kathmere Capital Management LLC increased its stake in shares of PepsiCo by 122.6% in the third quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company's stock worth $2,860,000 after purchasing an additional 11,217 shares during the period. Finally, Mediolanum International Funds Ltd boosted its stake in PepsiCo by 19.3% during the 3rd quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock valued at $35,451,000 after purchasing an additional 40,947 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Trending Headlines about PepsiCo

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

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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