Royal Bank Of Canada Forecasts Strong Price Appreciation for PepsiCo (NASDAQ:PEP) Stock

PepsiCo (NASDAQ:PEP) had its target price lifted by research analysts at Royal Bank Of Canada from $156.00 to $165.00 in a report released on Monday,MarketScreener reports. The brokerage currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price target suggests a potential upside of 0.05% from the company’s current price.

Several other analysts have also recently commented on PEP. JPMorgan Chase & Co. boosted their price target on shares of PepsiCo from $164.00 to $176.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 4th. Evercore boosted their target price on PepsiCo from $152.00 to $165.00 in a research report on Wednesday, February 4th. UBS Group restated a “buy” rating and set a $190.00 price target on shares of PepsiCo in a report on Wednesday, February 4th. Argus raised PepsiCo to a “hold” rating in a report on Tuesday, February 17th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Friday, January 9th. 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. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $168.50.

PepsiCo Stock Down 1.4%

Shares of PEP opened at $164.91 on Monday. The business’s 50 day moving average is $153.98 and its 200 day moving average is $149.07. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06. PepsiCo has a 12-month low of $127.60 and a 12-month high of $171.48. The company has a market capitalization of $225.37 billion, a PE ratio of 27.49, a price-to-earnings-growth ratio of 3.21 and a beta of 0.39.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings data on Monday, February 2nd. The company reported $2.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The business had revenue of $29.34 billion during the quarter, compared to analyst estimates of $28.96 billion. During the same period last year, the firm posted $1.96 EPS. The company’s revenue was up 5.6% on a year-over-year basis. Research analysts expect that PepsiCo will post 8.3 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On PepsiCo

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of PepsiCo in the fourth quarter worth approximately $3,018,813,000. Laurel Wealth Advisors LLC increased its stake in PepsiCo by 14,420.2% in the second quarter. Laurel Wealth Advisors LLC now owns 3,890,688 shares of the company’s stock worth $513,726,000 after purchasing an additional 3,863,893 shares during the period. AQR Capital Management LLC lifted its position in shares of PepsiCo by 120.7% during the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after purchasing an additional 3,235,726 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of PepsiCo by 9.7% during the second quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company’s stock valued at $3,833,406,000 after purchasing an additional 2,556,163 shares during the period. Finally, Franklin Resources Inc. grew its holdings in shares of PepsiCo by 19.5% in the second quarter. Franklin Resources Inc. now owns 15,577,073 shares of the company’s stock worth $2,056,797,000 after purchasing an additional 2,541,455 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Launched product innovation — PepsiCo unveiled a protein‑packed Doritos SKU, which supports the company’s strategy to pursue higher‑value, better‑for‑you snacking and could help volume/mix over time. PepsiCo unveils protein-packed Doritos
• Positive Sentiment: Legal win on benefits issue — PepsiCo beat a would‑be class action over a health plan smoker fee, removing one near‑term legal overhang and avoiding potential payouts or liability. PepsiCo Beats Would-be Class Suit Over Health Plan’s Smoker Fee
• Positive Sentiment: Strategic/financial tailwinds highlighted — coverage and commentary (Zacks, and other outlets) continue to portray PEP as a strong growth stock based on diversification and brand strength; that supports longer‑term investor demand. Here’s Why PepsiCo (PEP) is a Strong Growth Stock
• Neutral Sentiment: Capital allocation/price target update — RBC raised its price target to $165 but kept a “sector perform” rating, signaling limited near‑term upside even as some analysts tweak estimates. PepsiCo (NASDAQ:PEP) Given New $165.00 Price Target at Royal Bank Of Canada
• Neutral Sentiment: Management moves — an internal marketing promotion (Rajat Paul elevated to marketing manager, global canisters & imports) is a routine corporate update that has limited direct stock impact but signals continuity in brand execution. PepsiCo elevates Rajat Paul to marketing manager- Global canisters & imports
• Negative Sentiment: New shareholder litigation/investigation — an investor alert says law firm Scott+Scott is investigating PepsiCo’s directors and officers for alleged breach of fiduciary duties, a development that raises governance risk and potential legal costs or distraction. PEPSICO, INC. INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates PepsiCo, Inc.’s Directors and Officers for Breach of Fiduciary Duties – PEP
• Negative Sentiment: Regulatory/regime uncertainty fueling lawsuits — recent reporting on a shift in SEC enforcement policy has coincided with more investor lawsuits (PepsiCo named among targets), increasing regulatory uncertainty and the risk of additional shareholder actions. Analysis-Trump’s SEC gave companies more power over investors. Lawsuits pushed them back
• Negative Sentiment: Industry demand risk flagged — coverage of peers (MarketBeat on SJM) highlights investor concern around GLP‑1 weight‑loss drugs and potential structural pressure on indulgent snack volumes, a thematic risk that investors are watching for PepsiCo’s snacks franchise. SJM Surges 9%, But Hostess Weakness Clouds Outlook (PEP)

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.