Wells Fargo & Company Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its price objective decreased by equities research analysts at Wells Fargo & Company from $140.00 to $135.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price target would indicate a potential upside of 7.39% from the stock’s current price.

Several other equities analysts have also recently issued reports on the company. Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a report on Friday, July 10th. Piper Sandler set a $176.00 price target on PepsiCo in a research report on Thursday, July 9th. Royal Bank Of Canada cut their price target on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a research note on Friday, July 10th. Weiss Ratings lowered shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, September 24th. Finally, TD Cowen dropped their target price on shares of PepsiCo from $145.00 to $133.00 and set a “hold” rating for the company in a report on Monday, September 28th. Five investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $150.20.

PepsiCo Trading Up 0.0%

Shares of PEP opened at $125.71 on Monday. PepsiCo has a twelve month low of $124.21 and a twelve month high of $171.48. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The firm has a market capitalization of $171.58 billion, a P/E ratio of 16.48, a PEG ratio of 2.85 and a beta of 0.35. The firm’s 50-day moving average is $136.38 and its two-hundred day moving average is $143.53.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating 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 10.78% and a return on equity of 54.63%. The company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period last year, the firm earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts predict that PepsiCo will post 8.56 earnings per share for the current fiscal year.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated 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 owned 74,825 shares in the company, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PepsiCo

Several hedge funds have recently modified their holdings of PEP. Auto Owners Insurance Co grew its holdings in shares of PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after buying an additional 48,923,629 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of PepsiCo during the second quarter valued at approximately $2,755,509,000. Legal & General Group Plc acquired a new stake in PepsiCo during the second quarter worth approximately $1,200,274,000. Corient Private Wealth LP purchased a new stake in PepsiCo in the 2nd quarter worth approximately $297,116,000. Finally, Canada Pension Plan Investment Board acquired a new position in PepsiCo in the 2nd quarter valued at $487,558,000. 73.07% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is refining its price-pack strategy to offer more affordable products and support sales volumes as consumers become more price-sensitive. The approach could help stabilize North American demand, although its success will depend on whether volume gains offset lower pricing. PepsiCo Sharpens Price-Pack Strategy: Can Affordability Pay Off?
• Positive Sentiment: A Delhi High Court ruling reportedly allows PepsiCo and partners to sell existing beverage inventory using the “energy drink” label in India, providing a partial commercial reprieve. However, the companies reportedly cannot manufacture additional products under that designation. Delhi High Court Energy Drink Label Ruling
• Neutral Sentiment: PepsiCo’s earnings release is the main near-term catalyst. Options traders are pricing in an approximately 3.75% post-earnings move, while analysts remain divided on whether the low valuation reflects an attractive turnaround opportunity or continuing fundamental deterioration. PepsiCo Q3 Earnings Options Outlook
• Negative Sentiment: RBC lowered its price target to $150 from $161 and maintained a sector-perform rating, citing limited top-line upside, persistent consumer and macroeconomic pressure, and rising freight and logistics costs that could weigh on margins into 2027. RBC PepsiCo Q3 Preview
• Negative Sentiment: Commentary ahead of earnings highlights pressure at Frito-Lay and PepsiCo’s broader snack and beverage businesses, including competition from newer brands, changing consumer preferences and the potential impact of GLP-1 weight-loss drugs. This has widened the perceived performance gap with Coca-Cola. Jim Cramer Discusses PepsiCo and Coca-Cola
• Negative Sentiment: PepsiCo recalled roughly 122,000 cases of Gatorade sold across multiple states because of undeclared dyes. The financial impact may be limited, but the recall creates added regulatory, brand and execution risk. PepsiCo Gatorade Recall

PepsiCo Company Profile

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.