Morgan Stanley Issues Positive Forecast for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its target price lifted by analysts at Morgan Stanley from $165.00 to $180.00 in a report released on Wednesday,MarketScreener reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target would indicate a potential upside of 8.94% from the stock’s previous close.

Other equities analysts have also issued reports about the company. Loop Capital set a $164.00 price objective on PepsiCo in a report on Thursday, October 23rd. Royal Bank Of Canada reissued a “sector perform” rating on shares of PepsiCo in a research note on Wednesday. Bank of America lifted their price objective on shares of PepsiCo from $150.00 to $155.00 and gave the company a “neutral” rating in a research note on Friday, October 10th. UBS Group decreased their target price on shares of PepsiCo from $172.00 to $170.00 and set a “buy” rating for the company in a research report on Wednesday, January 14th. Finally, Piper Sandler upped their price target on shares of PepsiCo from $161.00 to $172.00 and gave the stock an “overweight” rating in a research note on Tuesday, December 9th. Ten analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $162.22.

PepsiCo Price Performance

Shares of PEP opened at $165.22 on Wednesday. The company has a debt-to-equity ratio of 2.26, a current ratio of 0.91 and a quick ratio of 0.72. The company has a market cap of $225.91 billion, a P/E ratio of 31.41, a PEG ratio of 5.10 and a beta of 0.40. PepsiCo has a 12 month low of $127.60 and a 12 month high of $163.44. The stock has a fifty day moving average price of $146.47 and a 200 day moving average price of $145.81.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Tuesday, February 3rd. The company reported $2.26 earnings per share for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. The business had revenue of $29.34 billion for the quarter, compared to analysts’ expectations of $28.96 billion. PepsiCo had a net margin of 7.82% and a return on equity of 57.58%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.96 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts forecast that PepsiCo will post 8.3 earnings per share for the current year.

PepsiCo announced that its Board of Directors has initiated a share buyback program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. Evolution Wealth Management Inc. bought a new position in PepsiCo in the 2nd quarter worth $27,000. JCIC Asset Management Inc. acquired a new stake in shares of PepsiCo in the third quarter valued at about $27,000. MH & Associates Securities Management Corp ADV bought a new position in shares of PepsiCo in the fourth quarter worth about $29,000. Vermillion & White Wealth Management Group LLC lifted its position in shares of PepsiCo by 107.1% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 234 shares of the company’s stock worth $31,000 after purchasing an additional 121 shares during the last quarter. Finally, Imprint Wealth LLC acquired a new stake in PepsiCo in the 3rd quarter valued at approximately $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat expectations and management reiterated FY26 guidance — EPS $2.26 vs. $2.24 est; revenue beat and organic growth acceleration. The print shows improving beverage trends that helped the quarter. CNBC: PepsiCo earnings beat
• Positive Sentiment: Board authorized a $10 billion share repurchase (≈4.7% of shares) and the company raised its dividend — a clear capital-return signal that typically supports the stock. RTT News: $10B buyback
• Neutral Sentiment: PepsiCo is cutting suggested retail prices on marquee snack SKUs (Lay’s, Doritos, Cheetos) by as much as ~15% to drive affordability and volume, rolling out ahead of the Super Bowl. This can boost demand but may compress snack margins until volumes recover. Business Insider: Price cuts on snacks
• Neutral Sentiment: Analyst positioning is mixed: TD Cowen kept a Hold with a $162 target, citing improving fundamentals but execution and valuation risks — indicating investor caution despite the operational progress. TipRanks: TD Cowen Hold
• Negative Sentiment: Some investors/analysts warn the rally is multiple expansion rather than a fundamental recovery — volumes remain weak, margins are under pressure, and planned price cuts trade margin certainty for a hoped-for volume rebound. At current forward multiples, upside depends on execution rather than valuation safety. Seeking Alpha: Rally risky / downgrade

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.