UBS Group Issues Pessimistic Forecast for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its price objective decreased by equities research analysts at UBS Group from $190.00 to $186.00 in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. The firm currently has a “buy” rating on the stock. UBS Group’s price objective indicates a potential upside of 20.16% from the stock’s previous close.

Several other analysts have also recently weighed in on PEP. BNP Paribas Exane set a $191.00 price objective on shares of PepsiCo in a research note on Wednesday, February 4th. Evercore upped their price objective on shares of PepsiCo from $152.00 to $165.00 in a research note on Wednesday, February 4th. Rothschild & Co Redburn upped their price objective on shares of PepsiCo from $120.00 to $130.00 and gave the stock a “sell” rating in a research note on Tuesday, February 10th. Morgan Stanley upped their price objective on shares of PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 4th. Finally, Royal Bank Of Canada upped their price objective on shares of PepsiCo from $156.00 to $165.00 and gave the stock a “sector perform” rating in a research note on Monday, March 2nd. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and a consensus price target of $168.58.

PepsiCo Stock Performance

NASDAQ PEP opened at $154.80 on Tuesday. The stock has a market cap of $211.60 billion, a P/E ratio of 25.80, a PEG ratio of 3.03 and a beta of 0.40. The company’s 50-day simple moving average is $160.34 and its 200 day simple moving average is $150.88. PepsiCo has a twelve month low of $127.60 and a twelve month high of $171.48. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 2.06.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Monday, February 2nd. The company reported $2.26 earnings per share for the quarter, beating 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 8.77% and a return on equity of 57.92%. The firm’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.96 earnings per share. As a group, research analysts forecast that PepsiCo will post 8.3 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On PepsiCo

A number of large investors have recently modified their holdings of PEP. Brighton Jones LLC lifted its position in shares of PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock worth $9,031,000 after purchasing an additional 6,574 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of PepsiCo during the first quarter worth approximately $251,000. Sivia Capital Partners LLC lifted its position in shares of PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock worth $862,000 after purchasing an additional 3,790 shares in the last quarter. Schnieders Capital Management LLC. lifted its position in shares of PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock worth $5,039,000 after purchasing an additional 3,502 shares in the last quarter. Finally, Jump Financial LLC lifted its holdings in PepsiCo by 611.1% in the second quarter. Jump Financial LLC now owns 71,822 shares of the company’s stock valued at $9,483,000 after buying an additional 61,722 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo commissioned eight retrofitted electric trucks in India, advancing its carbon‑reduction and logistics-efficiency goals that can lower operating costs and appeal to ESG-focused investors. PepsiCo commissions eight retrofitted electric trucks in India
• Positive Sentiment: JPMorgan trimmed its price target slightly (from $176 to $172) but kept an Overweight rating, signaling continued buy-side support even after the modest adjustment. JPMorgan adjusts price target on PepsiCo
• Positive Sentiment: Technical/near‑term commentary suggests PepsiCo could see a tactical bounce into Q1 earnings as momentum improves, which may support short‑term upside ahead of results. PepsiCo sets up for a tactical bounce into Q1 earnings
• Neutral Sentiment: Analysts broadly expect Q1 results to be largely in‑line with consensus; investor focus will be on North America foods turnaround, PBNA growth plans, and any comments on geopolitical risks. PepsiCo seen posting in-line Q1
• Neutral Sentiment: Some broker models have trimmed fair value slightly and issued mixed target moves (both upgrades and cuts), indicating divergent views but no consensus negative re‑rating yet. How the PepsiCo investment narrative is shifting
• Negative Sentiment: Repeated media reports say steep Doritos price hikes (bags up ~50% since 2021) led to major sales losses and a subsequent price rollback; coverage suggests this misstep cost the company billions and remains a reputational and volume headwind. How $7 bags of Doritos cost PepsiCo billions
• Negative Sentiment: Price cuts by Frito‑Lay have not fully placated consumers; commentary and short‑term sales weakness have pressured investor sentiment and contributed to share weakness in recent sessions. PepsiCo stock slips as Frito‑Lay price cuts fail to please customers
• Negative Sentiment: Customer/contract losses (e.g., reports that Marriott moved away from Pepsi in some properties) add brand and revenue risk in key venues like hotels and events. Marriott dumps Pepsi

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.