JPMorgan Chase & Co. Forecasts Strong Price Appreciation for PepsiCo (NASDAQ:PEP) Stock

PepsiCo (NASDAQ:PEP) had its price objective increased by equities research analysts at JPMorgan Chase & Co. from $164.00 to $176.00 in a note issued to investors on Wednesday, MarketBeat Ratings reports. The firm currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s target price points to a potential upside of 5.06% from the company’s current price.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Friday, January 9th. Jefferies Financial Group boosted their target price on shares of PepsiCo from $163.00 to $164.00 and gave the stock a “hold” rating in a research note on Tuesday, December 9th. Exane BNP Paribas reaffirmed an “outperform” rating on shares of PepsiCo in a research note on Wednesday. Barclays boosted their price objective on PepsiCo from $148.00 to $160.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Finally, Evercore ISI raised their target price on PepsiCo from $150.00 to $152.00 in a research report on Friday, October 10th. Nine 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. According to data from MarketBeat.com, PepsiCo has a consensus rating of “Hold” and a consensus target price of $167.28.

PepsiCo Stock Performance

NASDAQ PEP opened at $167.53 on Wednesday. The stock has a market capitalization of $228.95 billion, a price-to-earnings ratio of 27.92, a PEG ratio of 5.43 and a beta of 0.40. The stock has a 50-day moving average of $147.22 and a 200 day moving average of $146.10. The company has a current ratio of 0.85, a quick ratio of 0.72 and a debt-to-equity ratio of 2.06. PepsiCo has a twelve month low of $127.60 and a twelve month high of $168.01.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Tuesday, February 3rd. The company reported $2.26 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%.PepsiCo’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same period last year, the company earned $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts anticipate that PepsiCo will post 8.3 EPS for the current fiscal year.

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

Hedge Funds Weigh In On PepsiCo

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Intrua Financial LLC grew its holdings in PepsiCo by 3.0% in the 4th quarter. Intrua Financial LLC now owns 10,439 shares of the company’s stock valued at $1,498,000 after buying an additional 303 shares in the last quarter. Kane Co Wealth Management Inc. acquired a new position in shares of PepsiCo during the 4th quarter valued at about $241,000. CDM Financial Counseling Services Inc. purchased a new stake in shares of PepsiCo in the fourth quarter valued at about $335,000. Integrated Investment Consultants LLC increased 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 worth $2,031,000 after purchasing an additional 7,314 shares during the last quarter. Finally, Mission Wealth Management LP raised its stake in PepsiCo by 12.9% during the fourth quarter. Mission Wealth Management LP now owns 19,082 shares of the company’s stock worth $2,739,000 after purchasing an additional 2,182 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

Key Headlines 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.