PepsiCo (NASDAQ:PEP) Price Target Cut to $161.00 by Analysts at Royal Bank Of Canada

PepsiCo (NASDAQ:PEP) had its price target trimmed by Royal Bank Of Canada from $163.00 to $161.00 in a research note released on Friday, Marketbeat reports. They currently have a sector perform rating on the stock.

Several other research firms have also recently issued reports on PEP. Wall Street Zen cut PepsiCo from a “buy” rating to a “hold” rating in a research report on Saturday, April 18th. Sanford C. Bernstein set a $134.00 target price on PepsiCo in a report on Friday. BNP Paribas Exane lowered their price target on PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a report on Wednesday. The Goldman Sachs Group increased their price objective on PepsiCo from $180.00 to $183.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Finally, Jefferies Financial Group set a $162.00 target price on PepsiCo in a research report on Thursday, June 25th. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $157.70.

PepsiCo Stock Down 0.3%

NASDAQ:PEP opened at $137.38 on Friday. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.72 and a current ratio of 0.93. The firm has a market cap of $187.77 billion, a P/E ratio of 21.57, a P/E/G ratio of 2.78 and a beta of 0.36. PepsiCo has a fifty-two week low of $133.75 and a fifty-two week high of $171.48. The firm has a 50-day simple moving average of $145.42 and a two-hundred day simple moving average of $151.46.

PepsiCo (NASDAQ:PEP) last issued its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the prior year, the firm posted $0.92 earnings per share. The business’s revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Analysts predict that PepsiCo will post 8.62 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th were paid a $1.48 dividend. This represents a $5.92 annualized dividend and a dividend yield of 4.3%. This is an increase from PepsiCo’s previous quarterly dividend of $1.42. The ex-dividend date of this dividend was Friday, June 5th. PepsiCo’s dividend payout ratio is 92.94%.

Institutional Investors Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. Regent Peak Wealth Advisors LLC raised its position in shares of PepsiCo by 26.9% during the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 2,151 shares of the company’s stock valued at $291,000 after purchasing an additional 456 shares during the period. Bank & Trust Co boosted its holdings in PepsiCo by 3.1% in the 2nd quarter. Bank & Trust Co now owns 8,470 shares of the company’s stock worth $1,147,000 after buying an additional 258 shares during the period. Wedge Capital Management L L P NC purchased a new stake in PepsiCo in the 2nd quarter worth $454,000. Annex Advisory Services LLC raised its holdings in PepsiCo by 2.5% during the second quarter. Annex Advisory Services LLC now owns 6,451 shares of the company’s stock valued at $873,000 after acquiring an additional 158 shares during the period. Finally, Butensky & Cohen Financial Security Inc. lifted its position in shares of PepsiCo by 3.5% in the second quarter. Butensky & Cohen Financial Security Inc. now owns 32,053 shares of the company’s stock valued at $4,340,000 after acquiring an additional 1,096 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s Q2 revenue topped Wall Street estimates, supported by stronger international growth and improved volumes in some markets.
• Positive Sentiment: The company reaffirmed its full-year guidance, which can help reassure investors that the turnaround plan is still on track.
• Positive Sentiment: PepsiCo’s long dividend track record remains a draw for income investors, with the company continuing its streak of annual increases.
• Neutral Sentiment: Several firms, including RBC, TD Cowen, Wells Fargo, Citi, and others, lowered price targets after the report, but most still kept neutral or hold-type ratings. Citi Analyst Downgrades PepsiCo Stock (PEP) Despite Q2 Beat, Slashes Target by 15%
• Neutral Sentiment: Analysts remain split between PepsiCo’s dividend/stability appeal and concerns about valuation, margin pressure, and a slow U.S. recovery. PepsiCo’s $200 Billion Stability Play Is Attracting Dividend Investors
• Negative Sentiment: Investors are worried that soft North American snack and beverage demand, plus higher commodity and fuel costs, could keep earnings momentum muted.
• Negative Sentiment: Media coverage compared PepsiCo unfavorably with Coca-Cola, highlighting market-share pressure and a more difficult turnaround narrative for PEP shares.

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.