Evercore ISI Increases PepsiCo (NASDAQ:PEP) Price Target to $165.00

PepsiCo (NASDAQ:PEP) had its target price increased by equities research analysts at Evercore ISI from $152.00 to $165.00 in a research report issued to clients and investors on Wednesday,MarketScreener reports. Evercore ISI’s price objective indicates a potential downside of 1.33% from the stock’s previous close.

PEP has been the topic of a number of other reports. Royal Bank Of Canada reissued a “sector perform” rating and set a $156.00 price target on shares of PepsiCo in a report on Wednesday. The Goldman Sachs Group upped their price target on shares of PepsiCo from $165.00 to $167.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. BNP Paribas Exane set a $191.00 price target on shares of PepsiCo in a report on Wednesday. Rothschild & Co Redburn lifted their price target on PepsiCo from $117.00 to $120.00 and gave the stock a “sell” rating in a research report on Monday, December 15th. Finally, TD Cowen upped their price objective on PepsiCo from $155.00 to $162.00 and gave the company a “hold” rating in a research note on Wednesday. Nine analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $167.28.

PepsiCo Trading Up 0.6%

NASDAQ:PEP traded up $1.04 during trading hours on Wednesday, reaching $167.22. 6,552,867 shares of the company were exchanged, compared to its average volume of 9,251,137. The firm has a market cap of $228.65 billion, a price-to-earnings ratio of 27.90, a PEG ratio of 5.35 and a beta of 0.40. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.72. PepsiCo has a 52-week low of $127.60 and a 52-week high of $168.01. The stock has a 50 day simple moving average of $146.83 and a 200 day simple moving average of $145.95.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Tuesday, February 3rd. The company reported $2.26 EPS for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. The business had revenue of $29.34 billion for the quarter, compared to analysts’ expectations of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, analysts predict that PepsiCo will post 8.3 EPS for the current year.

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

Institutional Investors Weigh In On PepsiCo

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of PepsiCo by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock valued at $19,875,205,000 after purchasing an additional 1,612,652 shares during the last quarter. State Street Corp raised its holdings in shares of PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company’s stock valued at $8,356,155,000 after acquiring an additional 1,079,970 shares in the last quarter. Geode Capital Management LLC grew its position in PepsiCo by 0.3% in the second quarter. Geode Capital Management LLC now owns 32,675,492 shares of the company’s stock worth $4,301,240,000 after acquiring an additional 86,695 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of PepsiCo by 9.7% during the 2nd 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 last quarter. Finally, Norges Bank purchased a new stake in PepsiCo during the 2nd quarter valued at about $2,330,594,000. 73.07% of the stock is owned by institutional investors.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat and guidance reiterated — Pepsi reported stronger-than-expected revenue and EPS and kept FY2026 guidance, which underpins the rally. Earnings Report
• Positive Sentiment: Analysts lifting price targets — Several banks raised PEP targets (examples: Morgan Stanley to $180, JPMorgan to $176, HSBC to $175), signaling improved street sentiment and supporting near-term demand for the stock. Morgan Stanley Price Target JPMorgan Price Target HSBC Price Target
• Positive Sentiment: $10 billion share repurchase — Board approved a $10B buyback (about 4.7% of shares), which is a clear capital-return signal and can be EPS-accretive. Buyback Announcement
• Positive Sentiment: Dividend raise and declared payout — PepsiCo declared a quarterly dividend ($1.4225), a ~5% increase year-over-year, reinforcing income appeal. Dividend Release
• Positive Sentiment: Strategic initiatives gaining traction — Management is streamlining SKUs, testing integrated distribution (beverage + snacks) and refocusing on core brands and health-forward products; investors view this as constructive for margins and growth if execution holds. MarketBeat Strategic Summary
• Neutral Sentiment: Planned snack price cuts (up to ~15%) — Management said it will lower suggested retail prices on key snacks to drive volume and respond to consumer backlash; this should boost sales but could compress margins until volume gains materialize. Price Cut Coverage
• Negative Sentiment: Bearish/valuation concerns — Some analysts and commentators warn the rally is multiple-driven, not yet volume-driven; cutting prices trades margin certainty for hoped-for share gains, raising execution risk and downside if volumes don’t follow. Seeking Alpha Critique

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.