PepsiCo (NASDAQ:PEP) Given New $180.00 Price Target at Morgan Stanley

PepsiCo (NASDAQ:PEP) had its price target hoisted by Morgan Stanley from $165.00 to $180.00 in a research report sent to investors on Wednesday,MarketScreener reports. The firm currently has an equal weight rating on the stock.

Several other research analysts have also commented on PEP. Loop Capital set a $164.00 price objective on shares of PepsiCo in a research note on Thursday, October 23rd. Barclays lifted their price target on shares of PepsiCo from $148.00 to $160.00 and gave the stock an “equal weight” rating in a report on Wednesday. Wells Fargo & Company increased their price objective on PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a report on Wednesday. Rothschild & Co Redburn boosted their target price on PepsiCo from $117.00 to $120.00 and gave the stock a “sell” rating in a research note on Monday, December 15th. Finally, UBS Group decreased their price target on PepsiCo from $172.00 to $170.00 and set a “buy” rating for the company in a research note on Wednesday, January 14th. Nine analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $165.28.

PepsiCo Trading Up 2.0%

PEP opened at $166.18 on Wednesday. The company has a current ratio of 0.85, a quick ratio of 0.72 and a debt-to-equity ratio of 2.06. The firm has a market cap of $227.22 billion, a price-to-earnings ratio of 27.70, a PEG ratio of 5.35 and a beta of 0.40. PepsiCo has a 12 month low of $127.60 and a 12 month high of $167.94. The stock has a fifty day moving average price of $146.83 and a 200-day moving average price of $145.95.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Tuesday, February 3rd. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.24 by $0.02. The company had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The firm’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, equities research analysts anticipate that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Friday, December 5th were paid a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a yield of 3.4%. The ex-dividend date was Friday, December 5th. PepsiCo’s payout ratio is presently 108.17%.

PepsiCo declared that its Board of Directors has authorized a share repurchase plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On PepsiCo

A number of large investors have recently bought and sold shares of the company. Evolution Wealth Management Inc. purchased a new stake in shares of PepsiCo in the 2nd quarter valued at $27,000. JCIC Asset Management Inc. acquired a new position in PepsiCo during the third quarter valued at $27,000. MH & Associates Securities Management Corp ADV purchased a new stake in PepsiCo in the fourth quarter valued at $29,000. Vermillion & White Wealth Management Group LLC grew its position in 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 period. Finally, Imprint Wealth LLC purchased a new position in shares of PepsiCo during the 3rd quarter valued at about $31,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat expectations and management reiterated FY‑2026 guidance — revenue and adjusted EPS topped estimates, driven by international soda strength and improving beverage momentum. This beat is the primary fundamental catalyst supporting the rally. PepsiCo tops quarterly revenue estimates
• Positive Sentiment: Board authorized a $10 billion share repurchase program (≈4.7% of shares outstanding), signaling management believes shares are undervalued and providing buyback-driven EPS support. RTT News on buyback
• Positive Sentiment: Dividend raised — board declared a quarterly dividend of $1.4225 per share, a 5% increase year-over-year, reinforcing income appeal for dividend investors. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: Several sell‑side firms raised price targets (JPMorgan, Morgan Stanley, TD Cowen, Barclays among others), which can support momentum and attract allocation flows. Analyst price-target moves
• Neutral Sentiment: PepsiCo will cut suggested retail prices on major snacks (Lay’s, Doritos, Cheetos) by as much as 15% to boost affordability and volume ahead of big consumption events — a deliberate trade of price for share/volume that could help demand but pressures near-term margins. After Years of Increases, PepsiCo Pledges to Cut Prices on Snacks
• Neutral Sentiment: Strategic initiatives (tests to integrate beverage/snack distribution, trimming SKUs ~20%, refocusing top brands) aim to lift margins and execution — positive long-term if executed, but results are still early. MarketBeat strategic summary
• Negative Sentiment: Bearish/critical takes argue the rally is multiple expansion rather than improving volumes — price-led growth in Q4 and the new price cuts raise execution risk and could compress margins; some analysts/voices label the setup risky for new buyers. Seeking Alpha — Strong Sell
• Negative Sentiment: Macro/structural headwinds to snack volumes (e.g., consumer affordability pressures, GLP‑1–related demand shifts cited by commentators) remain a watch item; management is banking on price cuts and product focus to recover volumes. Jim Cramer commentary

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.