Rothschild & Co Redburn Issues Positive Forecast for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its target price upped by investment analysts at Rothschild & Co Redburn from $120.00 to $130.00 in a research note issued to investors on Tuesday,MarketScreener reports. The brokerage currently has a “sell” rating on the stock. Rothschild & Co Redburn’s target price points to a potential downside of 22.04% from the stock’s current price.

Several other research analysts also recently weighed in on PEP. HSBC increased their price target on PepsiCo from $152.00 to $175.00 and gave the stock a “hold” rating in a research note on Thursday, February 5th. Wall Street Zen cut shares of PepsiCo from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Morgan Stanley raised their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Wells Fargo & Company boosted their price target on shares of PepsiCo from $154.00 to $165.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 4th. Finally, UBS Group reaffirmed a “buy” rating and issued a $190.00 target price on shares of PepsiCo in a research note on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $167.68.

PepsiCo Stock Up 0.2%

PEP stock opened at $166.75 on Tuesday. The stock has a market cap of $227.88 billion, a P/E ratio of 27.52, a P/E/G ratio of 3.26 and a beta of 0.40. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06. The stock’s fifty day simple moving average is $147.99 and its two-hundred day simple moving average is $146.46. PepsiCo has a 1-year low of $127.60 and a 1-year high of $170.75.

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

PepsiCo declared that its Board of Directors has approved a stock repurchase plan on Tuesday, February 3rd that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the company to reacquire up to 4.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On PepsiCo

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock worth $19,875,205,000 after buying an additional 1,612,652 shares in the last quarter. State Street Corp lifted its position in PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock valued at $8,356,155,000 after purchasing an additional 1,079,970 shares during the period. Geode Capital Management LLC boosted its holdings in PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company’s stock worth $4,814,835,000 after purchasing an additional 360,936 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in PepsiCo by 9.7% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company’s stock worth $3,833,406,000 after purchasing an additional 2,556,163 shares during the period. Finally, Norges Bank bought a new stake in shares of PepsiCo in the second quarter worth $2,330,594,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

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.