PepsiCo (NASDAQ:PEP) Downgraded by JPMorgan Chase & Co. to Neutral

PepsiCo (NASDAQ:PEP) was downgraded by research analysts at JPMorgan Chase & Co. from an “overweight” rating to a “neutral” rating in a research note issued to investors on Tuesday, Marketbeat Ratings reports. They currently have a $138.00 price target on the stock, down from their prior price target of $170.00. JPMorgan Chase & Co.‘s target price suggests a potential upside of 7.23% from the company’s previous close.

Several other research analysts have also recently commented on PEP. Royal Bank Of Canada lowered their target price on shares of PepsiCo from $163.00 to $161.00 and set a “sector perform” rating on the stock in a report on Friday, July 10th. Weiss Ratings downgraded PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, September 24th. Morgan Stanley lowered their price objective on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a research note on Friday, July 10th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $138.00 price objective (down from $155.00) on shares of PepsiCo in a report on Monday. Finally, TD Cowen reduced their target price on PepsiCo from $145.00 to $133.00 and set a “hold” rating on the stock in a report on Monday. Five research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $152.90.

PepsiCo Stock Up 0.1%

PEP stock opened at $128.69 on Tuesday. The business’s fifty day moving average price is $137.59 and its two-hundred day moving average price is $144.63. The stock has a market capitalization of $175.65 billion, a price-to-earnings ratio of 16.87, a PEG ratio of 2.71 and a beta of 0.35. PepsiCo has a fifty-two week low of $126.42 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the prior year, the company posted $0.92 earnings per share. PepsiCo’s revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities analysts anticipate that PepsiCo will post 8.57 earnings per share for the current year.

Insider Buying and Selling at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.12% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Evergreen Advisors LLC bought a new position in PepsiCo in the 1st quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo in the fourth quarter valued at approximately $26,000. Montgomery Financial Services LLC bought a new stake in shares of PepsiCo during the second quarter worth $25,000. Networth Advisors LLC increased its holdings in shares of PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after buying an additional 200 shares in the last quarter. Finally, Vermillion Wealth Management Inc. lifted its stake in shares of PepsiCo by 99.1% in the 1st quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company’s stock valued at $34,000 after acquiring an additional 108 shares during the last quarter. Institutional investors own 73.07% of the company’s stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo plans to invest $1 billion in Colombia over the next five years, funding production expansion, agricultural support and other local initiatives. The investment could strengthen the company’s long-term international growth prospects. PepsiCo To Invest $1 Billion in Colombia
• Neutral Sentiment: JPMorgan lowered its PepsiCo price target to $138 from $170 while maintaining a Neutral rating. The revised target remains above the current trading level, but the sharp reduction signals materially lower expectations. JPMorgan Downgrades PepsiCo to Neutral
• Neutral Sentiment: PepsiCo’s third-quarter earnings report is expected next month, with analysts projecting only marginal year-over-year bottom-line improvement. Investors will watch whether productivity savings can support full-year EPS guidance of $8.55–$8.71. PepsiCo Quarterly Earnings Preview
• Negative Sentiment: Deutsche Bank and JPMorgan both downgraded PepsiCo to Hold or Neutral, citing a complicated turnaround, weak North American performance, Frito-Lay softness, rising costs and uncertainty around management’s strategy. PepsiCo Stock Slips After Second Downgrade
• Negative Sentiment: Planned price increases for sodas, chips and dips are raising concerns that PepsiCo is moving away from its affordability message. Higher prices could pressure volumes and consumer sentiment, particularly in a weaker North American market. PepsiCo Plans to Raise Prices

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay’s, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company’s operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.