Barclays Forecasts Strong Price Appreciation for PepsiCo (NASDAQ:PEP) Stock

PepsiCo (NASDAQ:PEP) had its target price increased by stock analysts at Barclays from $148.00 to $160.00 in a research note issued on Wednesday, MarketBeat Ratings reports. The firm currently has an “equal weight” rating on the stock. Barclays‘s price target would suggest a potential downside of 4.49% from the stock’s current price.

Several other research firms have also issued reports on PEP. JPMorgan Chase & Co. upgraded PepsiCo from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $151.00 to $164.00 in a research report on Wednesday, December 10th. HSBC raised their target price on shares of PepsiCo from $145.00 to $152.00 and gave the stock a “hold” rating in a report on Friday, October 10th. Loop Capital set a $164.00 price target on shares of PepsiCo in a research report on Thursday, October 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Friday, January 9th. Finally, Exane BNP Paribas reaffirmed an “outperform” rating on shares of PepsiCo in a research note on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $167.28.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $167.53 on Wednesday. The company has a quick ratio of 0.72, a current ratio of 0.85 and a debt-to-equity ratio of 2.06. The stock has a market cap of $228.95 billion, a PE ratio of 27.92, a PEG ratio of 5.43 and a beta of 0.40. The company’s fifty day moving average is $147.22 and its 200 day moving average is $146.10. PepsiCo has a 52 week low of $127.60 and a 52 week high of $168.01.

PepsiCo (NASDAQ:PEP) last posted its quarterly 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 business had revenue of $29.34 billion during the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The company’s revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Research analysts anticipate that PepsiCo will post 8.3 earnings per share for the current year.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Intrua Financial LLC raised its position in shares of PepsiCo by 3.0% in the 4th quarter. Intrua Financial LLC now owns 10,439 shares of the company’s stock worth $1,498,000 after acquiring an additional 303 shares in the last quarter. Kane Co Wealth Management Inc. purchased a new stake in PepsiCo in the fourth quarter worth $241,000. CDM Financial Counseling Services Inc. bought a new position in PepsiCo in the fourth quarter worth $335,000. Integrated Investment Consultants LLC lifted its position in PepsiCo by 107.0% during the fourth quarter. Integrated Investment Consultants LLC now owns 14,151 shares of the company’s stock valued at $2,031,000 after buying an additional 7,314 shares during the period. Finally, Mission Wealth Management LP boosted its holdings in shares of PepsiCo by 12.9% during the 4th quarter. Mission Wealth Management LP now owns 19,082 shares of the company’s stock valued at $2,739,000 after buying an additional 2,182 shares in the last quarter. 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 beat and reiterated guidance — PepsiCo topped EPS and revenue estimates for Q4 and kept FY2026 guidance intact, which underpins investor confidence in near-term results. Read More.
• Positive Sentiment: Analyst upgrades and higher price targets — A number of banks raised targets and/or ratings after the quarter (notable raises: UBS to $190, Morgan Stanley to $180, JPMorgan to $176, HSBC to $175), signaling improved sell‑side sentiment. Read More.
• Positive Sentiment: Large $10B buyback approved — Board authorized $10 billion in repurchases (≈4.7% of shares), which supports EPS and signals management confidence in valuation. Read More.
• Positive Sentiment: Dividend increase — Quarterly dividend raised to $1.4225 (5% YoY), keeping Pepsi in the Dividend Kings camp and attractive to income investors. Read More.
• Positive Sentiment: Productivity/efficiency tailwinds — Management is leaning on automation, distribution integration and SKU rationalization to offset inflation and expand margins, which analysts and outlets flag as a catalyst for EPS expansion. Read More.
• Neutral Sentiment: Strategic repositioning highlighted — MarketBeat and others note Pepsi is focusing on top brands, health-oriented SKUs and distribution tests (no full refranchising). These are longer-term actions that support the thesis but require execution. Read More.
• Negative Sentiment: Snack price cuts / consumer backlash — Pepsi will cut prices on certain US snacks (reports cite up to 15%) to drive volumes; this is framed as a “price investment” but risks near-term margin dilution and has drawn critical press and analyst scrutiny. Read More.
• Negative Sentiment: Bearish commentary on margin trade-off — Some analysts/commentators argue recent multiple expansion prices in a recovery that may require trading margin certainty for volume growth, raising execution risk for new buyers. Read More.

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.