FY2027 EPS Estimates for PepsiCo Lowered by Erste Group Bank

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Erste Group Bank reduced their FY2027 earnings per share estimates for shares of PepsiCo in a report released on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now expects that the company will post earnings per share of $9.11 for the year, down from their prior estimate of $9.14. The consensus estimate for PepsiCo’s current full-year earnings is $8.62 per share.

Several other analysts have also issued reports on the company. Citigroup cut their price target on PepsiCo from $182.00 to $170.00 and set a “buy” rating for the company in a report on Thursday, June 25th. Jefferies Financial Group set a $162.00 price objective on PepsiCo in a research note on Thursday, June 25th. TD Cowen decreased their target price on shares of PepsiCo from $165.00 to $150.00 and set a “hold” rating on the stock in a research note on Friday, June 12th. UBS Group lowered their price target on shares of PepsiCo from $190.00 to $186.00 and set a “buy” rating on the stock in a report on Tuesday, April 7th. Finally, Bank of America dropped their price target on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating for the company in a research report on Thursday, June 25th. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $166.80.

PepsiCo Stock Performance

PEP opened at $135.40 on Wednesday. The company’s 50 day moving average is $147.56 and its 200 day moving average is $151.91. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The company has a market cap of $185.06 billion, a price-to-earnings ratio of 21.26, a PEG ratio of 2.80 and a beta of 0.35. PepsiCo has a 12-month low of $132.47 and a 12-month high of $171.48.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, beating analysts’ consensus estimates of $1.55 by $0.06. The company had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.48 earnings per share.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date of this dividend was Friday, June 5th. This is an increase from PepsiCo’s previous quarterly dividend of $1.42. PepsiCo’s dividend payout ratio is 92.94%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Brighton Jones LLC increased its position in shares of PepsiCo by 12.4% during the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock valued at $9,031,000 after purchasing an additional 6,574 shares during the last quarter. Caxton Associates LLP purchased a new stake in PepsiCo during the 1st quarter valued at $251,000. Sivia Capital Partners LLC lifted its position in PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock worth $862,000 after buying an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. boosted its stake in PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock worth $5,039,000 after buying an additional 3,502 shares during the period. Finally, Sei Investments Co. boosted its stake in PepsiCo by 45.5% during the second quarter. Sei Investments Co. now owns 536,133 shares of the company’s stock worth $70,789,000 after buying an additional 167,707 shares during the period. Institutional investors own 73.07% of the company’s stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investor sentiment was lifted by bullish commentary from 24/7 Wall St., which argued PepsiCo could have more than 20% upside based on a price target above current levels and called the stock a buy. Pepsi Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: Unusual options activity pointed to rising trader interest, with investors buying a large volume of PepsiCo call options, often interpreted as a bullish signal. Investors Buy Large Volume of PepsiCo Call Options (NASDAQ:PEP)
• Positive Sentiment: PepsiCo expanded its manufacturing footprint in India by commissioning a second flavor plant in Ujjain, a long-term growth investment that could support supply and regional demand. PepsiCo India opens ₹1,266 cr flavour manufacturing facility in Ujjain
• Neutral Sentiment: Analysts are heading into PepsiCo’s July 9 earnings release expecting higher Q2 earnings and revenue, but this is still a forecast rather than a reported result. PepsiCo Likely To Report Higher Q2 Earnings
• Neutral Sentiment: PepsiCo is also facing a trademark dispute involving “Rise” and “Mtn Dew Rise” at the U.S. Supreme Court, which adds legal uncertainty but is not yet a confirmed financial hit. US Supreme Court takes up Pepsi ‘Mtn Dew Rise’ trademark dispute
• Negative Sentiment: Competition in the soda market remains intense, with Coca-Cola highlighted as having a Freestyle-machine advantage and launching an exclusive new soda flavor at Wingstop, underscoring pressure on PepsiCo’s beverage business. Coca-Cola launches exclusive soda flavor at fast-food giant

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.