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Deutsche Bank lowered its rating on the stock from a buy to a hold, which means they no longer see it as a top pick for new money. The firm set a target price of $138, which is still above where the stock trades today but lower than the average analyst target of $149.
This move reflects a more cautious view on the company's ability to grow in the near term. When a major firm moves to the sidelines like this, it often signals concerns about whether the company can keep raising prices without losing customers.
Source: Deutsche Bank
The company plans to raise prices across its soda and snack lines, including chips and dips. While higher prices can help protect profits when costs go up, analysts at TD Cowen warned that this move could hurt sales if it makes these everyday items feel less affordable to shoppers.
This is a key trend to watch because the business relies on people buying its snacks even when their budgets are tight. If these price hikes lead to fewer bags of chips sold, it could signal that the company is reaching the limit of its pricing power.
Source: Market Watch
The company is scheduled to report its latest results on October 8. Analysts expect earnings of about $2.30 per share on revenue of roughly 25 billion dollars. This update will be an important check on whether shoppers are still buying snacks and sodas at current prices or switching to cheaper store brands.
BNP Paribas kept its outperform rating on the company this week, setting a price target of $161. This suggests the stock could rise about 25 percent from its current level if it hits that mark. While the stock has been under pressure lately, this call reflects a view that the company's snacks and drinks business remains healthy. The average target across all analysts who follow the stock now sits at $154.
Source: BNP Paribas
On September 17, the company announced that Joaquin Duato will join its Board of Directors starting December 1, 2026. Duato currently serves as the Chairman and CEO of Johnson & Johnson, bringing deep experience in managing a massive global business to the board.
He will also join the Audit Committee, which is the group of directors responsible for overseeing the company's financial reporting and internal controls. For a company as large as PepsiCo, adding a sitting CEO from another major firm is a routine way to strengthen its oversight and strategic planning.
Source: 8-K filing
Management consistently hits its targets by small margins, showing they have a tight grip on the business and set bars they know they can clear.
| Expectation | |
|---|---|
| EPS | $2.30 |
| Revenue | $24.98B |