Barclays Has Lowered Expectations for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its price target reduced by analysts at Barclays from $160.00 to $154.00 in a report released on Tuesday, MarketBeat.com reports. The firm presently has an “equal weight” rating on the stock. Barclays‘s price target suggests a potential downside of 0.55% from the company’s previous close.

A number of other equities research analysts have also recently issued reports on PEP. Royal Bank Of Canada dropped their target price on shares of PepsiCo from $165.00 to $163.00 and set a “sector perform” rating for the company in a research report on Thursday, April 9th. TD Cowen increased their target price on shares of PepsiCo from $162.00 to $165.00 and gave the stock a “hold” rating in a research report on Friday, February 20th. Morgan Stanley increased their target price on shares of PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Argus upgraded shares of PepsiCo to a “hold” rating in a research report on Tuesday, February 17th. Finally, BNP Paribas Exane set a $191.00 target price on shares of PepsiCo in a research report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $168.16.

PepsiCo Trading Down 0.6%

Shares of PEP stock opened at $154.85 on Tuesday. PepsiCo has a 52-week low of $127.60 and a 52-week high of $171.48. The stock has a market cap of $211.67 billion, a price-to-earnings ratio of 25.81, a P/E/G ratio of 3.01 and a beta of 0.40. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.67 and a current ratio of 0.85. The firm has a fifty day moving average of $160.23 and a 200-day moving average of $151.41.

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 company had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion. During the same quarter in the prior year, the company posted $1.96 EPS. The business’s revenue was up 5.6% on a year-over-year basis. On average, equities research analysts forecast that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo announced that its Board of Directors has approved a share repurchase program 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 shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On PepsiCo

A number of hedge funds have recently added to or reduced their stakes in PEP. Cypress Capital Management LLC WY boosted its stake in shares of PepsiCo by 8.3% in the 4th quarter. Cypress Capital Management LLC WY now owns 838 shares of the company’s stock valued at $121,000 after purchasing an additional 64 shares during the last quarter. United Bank boosted its stake in shares of PepsiCo by 3.9% in the 4th quarter. United Bank now owns 1,717 shares of the company’s stock valued at $246,000 after purchasing an additional 65 shares during the last quarter. Three Bridge Wealth Advisors LLC boosted its stake in shares of PepsiCo by 1.8% in the 3rd quarter. Three Bridge Wealth Advisors LLC now owns 3,870 shares of the company’s stock valued at $544,000 after purchasing an additional 68 shares during the last quarter. Koa Wealth Management LLC boosted its stake in shares of PepsiCo by 0.9% in the 4th quarter. Koa Wealth Management LLC now owns 8,007 shares of the company’s stock valued at $1,149,000 after purchasing an additional 68 shares during the last quarter. Finally, Pettinga Financial Advisors LLC boosted its stake in shares of PepsiCo by 3.8% in the 4th quarter. Pettinga Financial Advisors LLC now owns 1,880 shares of the company’s stock valued at $270,000 after purchasing an additional 68 shares during the last quarter. 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: Prediction markets are pricing in a strong chance of an earnings beat for Q1 (Polymarket shows high beat probability), which could buoy the stock if results and commentary meet expectations. PepsiCo Earnings Prediction Market Preview: What Will Ramon Laguarta Say?
• Positive Sentiment: Several analysts have revised forecasts ahead of the call, raising odds of a positive post‑earnings reaction if guidance and margins are stable. PepsiCo Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Positive Sentiment: Celebrity/influencer support: Jim Cramer publicly said he’s impressed with PepsiCo’s handling of demand shifts (GLP‑1 era), which can help sentiment among retail investors. Jim Cramer Notes He is Impressed With “Pepsi’s Dealing With the Travails of Processed Food and the Year of GLP-1”
• Positive Sentiment: Dividend reliability and yield continue to be a structural positive for investors seeking income, highlighted in recent commentary about long‑term shareholder returns. Early Pepsi stock investors now earn a 10% dividend yield
• Neutral Sentiment: Multiple earnings previews and “everything to know” pieces set expectations for Q1 revenue around ~$18.9B and EPS ~ $1.54–1.55; these previews keep attention on guidance and margin commentary rather than creating new catalysts. PepsiCo (PEP) Reports Q1: Everything You Need To Know Ahead Of Earnings
• Neutral Sentiment: Previews note expected higher Q1 sales following price cuts — that supports top‑line momentum but leaves the market focused on whether margin recovery follows. PepsiCo Expected to Post Higher 1Q Sales Following Price Cuts — Earnings Preview
• Negative Sentiment: Barclays trimmed its price target to $154 and kept an Equal‑Weight rating, signaling limited near‑term upside and adding downward pressure on sentiment. Barclays adjusts PepsiCo price target to $154 from $160, maintains Equal Weight rating
• Negative Sentiment: Price cuts and product revamps aim to stimulate demand but raise near‑term margin risk — Barron’s and Seeking Alpha flag margins and Frito‑Lay volume issues as key risk areas for the print. PepsiCo Cuts Prices, Revamps Products. Earnings Will Show if It’s Working.
• Negative Sentiment: Corporate/legal overhang: PepsiCo settled an EEOC lawsuit related to a fired blind worker, a reputational/legal item that may modestly weigh on sentiment. PepsiCo Settles EEOC Lawsuit on Behalf of Fired Blind Worker
• Negative Sentiment: Activist pressure (Elliott) increases scrutiny — coverage notes PepsiCo must show the Elliott‑triggered turnaround is working, adding execution risk if results or guidance disappoint. PepsiCo faces pressure to show Elliott-triggered turnaround is working

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.