Royal Bank Of Canada Cuts PepsiCo (NASDAQ:PEP) Price Target to $161.00

PepsiCo (NASDAQ:PEP) had its price objective decreased by stock analysts at Royal Bank Of Canada from $163.00 to $161.00 in a report released on Friday,Benzinga reports. The firm presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price indicates a potential upside of 17.74% from the stock’s previous close.

Several other brokerages also recently weighed in on PEP. BNP Paribas Exane reduced their price target on PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a report on Wednesday. Morgan Stanley restated a “reduce” rating and set a $160.00 target price on shares of PepsiCo in a research note on Friday. Evercore set a $150.00 target price on shares of PepsiCo in a research report on Thursday. HSBC increased their target price on PepsiCo from $175.00 to $176.00 and gave the company a “hold” rating in a report on Friday, April 17th. Finally, Barclays dropped their price objective on shares of PepsiCo from $158.00 to $144.00 and set an “equal weight” rating on the stock in a report on Monday. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $159.40.

PepsiCo Stock Performance

Shares of PEP opened at $136.74 on Friday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The stock has a market capitalization of $186.89 billion, a price-to-earnings ratio of 21.40, a price-to-earnings-growth ratio of 2.87 and a beta of 0.36. PepsiCo has a 52-week low of $133.75 and a 52-week high of $171.48. The stock’s 50-day simple moving average is $145.78 and its 200 day simple moving average is $151.56.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm’s revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Research analysts forecast that PepsiCo will post 8.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Evergreen Advisors LLC purchased a new stake in PepsiCo during the first quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of PepsiCo in the 4th quarter valued at about $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the 4th quarter worth about $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo in the fourth quarter valued at approximately $29,000. Finally, Networth Advisors LLC raised its stake in shares of PepsiCo by 2,857.1% during the 1st quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after buying an additional 200 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo News Summary

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.