TD Cowen Forecasts Strong Price Appreciation for PepsiCo (NASDAQ:PEP) Stock

PepsiCo (NASDAQ:PEP) had its price objective upped by stock analysts at TD Cowen from $162.00 to $165.00 in a report released on Friday,MarketScreener reports. The firm presently has a “hold” rating on the stock. TD Cowen’s price target suggests a potential upside of 0.37% from the company’s current price.

A number of other research firms have also recently weighed in on PEP. Argus raised PepsiCo to a “hold” rating in a report on Tuesday. BNP Paribas Exane set a $191.00 price objective on PepsiCo in a research report on Wednesday, February 4th. Barclays upped their target price on shares of PepsiCo from $148.00 to $160.00 and gave the company an “equal weight” rating in a report on Wednesday, February 4th. Royal Bank Of Canada reissued a “sector perform” rating and set a $156.00 price objective on shares of PepsiCo in a research note on Wednesday, February 4th. Finally, Morgan Stanley upped their price target 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. Eight investment 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 data from MarketBeat.com, PepsiCo presently has an average rating of “Hold” and an average price target of $168.00.

PepsiCo Price Performance

NASDAQ:PEP traded down $0.19 during mid-day trading on Friday, hitting $164.40. 540,081 shares of the company’s stock traded hands, compared to its average volume of 9,002,388. PepsiCo has a 1 year low of $127.60 and a 1 year high of $171.48. The company has a market cap of $224.67 billion, a PE ratio of 27.39, a price-to-earnings-growth ratio of 3.13 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’s 50 day simple moving average is $150.96 and its 200 day simple moving average is $147.74.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Monday, February 2nd. The company reported $2.26 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $28.96 billion. During the same period in the prior year, the business earned $1.96 earnings per share. The company’s quarterly revenue was up 5.6% on a year-over-year basis. Sell-side analysts expect that PepsiCo will post 8.3 EPS for the current year.

PepsiCo announced that its board has initiated a stock repurchase plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On PepsiCo

Hedge funds and other institutional investors have recently modified their holdings of the stock. Clayton Financial Group LLC acquired a new stake in shares of PepsiCo during the third quarter valued at approximately $872,000. Avantax Advisory Services Inc. raised its stake in PepsiCo by 2.6% during the 2nd quarter. Avantax Advisory Services Inc. now owns 185,961 shares of the company’s stock valued at $24,554,000 after purchasing an additional 4,627 shares during the period. Kathmere Capital Management LLC lifted its holdings in shares of PepsiCo by 122.6% in the third quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company’s stock valued at $2,860,000 after purchasing an additional 11,217 shares in the last quarter. Pinnacle Associates Ltd. boosted its position in shares of PepsiCo by 9.7% in the second quarter. Pinnacle Associates Ltd. now owns 152,193 shares of the company’s stock worth $20,096,000 after buying an additional 13,517 shares during the period. Finally, Invesco Ltd. raised its position in PepsiCo by 11.7% during the second quarter. Invesco Ltd. now owns 12,659,046 shares of the company’s stock valued at $1,671,500,000 after buying an additional 1,330,888 shares during the period. Institutional investors own 73.07% of the company’s stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: U.S. court blocks a class-action snack-pricing suit against PepsiCo/Frito‑Lay — removes a material legal overhang and reduces potential litigation risk. PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit
• Positive Sentiment: New product momentum: PepsiCo is rolling its prebiotic soda nationwide and pursues prebiotic cola + fiber snacks — these innovations target growing health-conscious demand and could support top-line mix improvement if consumer uptake is strong. PepsiCo Bets On Prebiotic Cola And Fiber Snacks To Sustain Growth PepsiCo’s prebiotic soda is now nationwide
• Positive Sentiment: Brand & distribution wins: Mountain Dew Baja Blast named the official soft drink of MLB — expands marketing reach and seasonal/promotional upside for a high-margin brand. PepsiCo’s Mountain Dew Baja Blast becomes official soft drink of MLB
• Positive Sentiment: Strategic pivot to health-forward categories (fiber, hydration) highlighted at recent industry coverage and conferences — supports medium‑term revenue diversification beyond indulgence SKUs. PepsiCo: Pursuing Fiber and Hydration
• Positive Sentiment: Reliable income profile: PepsiCo recently paid its quarterly dividend (continuing a long streak), which supports appeal to income-focused investors. Retirees Are Quietly Accumulating This 8% Dividend Grower
• Neutral Sentiment: Analyst actions mixed: Argus moved PEP to a “hold” — a modest endorsement but not a catalyst for strong upside. Argus upgrade coverage
• Negative Sentiment: Zacks Research cut earnings estimates across multiple quarters and fiscal years (notably FY2026 EPS lowered to $8.11 from $8.52 and several quarterly downgrades). Those downward revisions are the main near-term headwind, suggesting pressure on margin/cost or slower-than-expected benefits from price/mix actions.

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.