PepsiCo Faces Lowered Price Targets and Mixed Analyst Sentiment

PepsiCo (NASDAQ: PEP) has seen its stock price target reduced by Royal Bank of Canada from $161.00 to $150.00 in a report released on Tuesday. The bank maintains a "sector perform" rating on the stock. This new target suggests a potential upside of 19.38% from the stock's current price.

Several other brokerages have also adjusted their outlook on PepsiCo. UBS Group lowered its target price from $159.00 to $145.00 but kept a "buy" rating. BNP Paribas Exane reduced its target from $183.00 to $161.00 with an "outperform" rating. Weiss Ratings downgraded PepsiCo from a "hold (c)" to a "hold (c-)" rating. TD Cowen decreased its target price from $145.00 to $133.00 with a "hold" rating. JPMorgan Chase & Co. downgraded PepsiCo from "overweight" to "neutral" and lowered its target price from $170.00 to $138.00.

Currently, PepsiCo has an average rating of "Hold" among analysts, with a consensus price target of $150.20. The stock opened at $125.65 on Tuesday, with a market cap of $171.50 billion. The company reported quarterly earnings of $2.20 per share, beating estimates by $0.01, and revenue of $24.18 billion, up 6.4% year-over-year.

In other news, PepsiCo is facing a recall of about 122,000 cases of Gatorade due to undeclared dyes, adding regulatory and reputational risks. Despite some positive sentiment around international growth and strategic repositioning, concerns about Frito-Lay sales and North American demand persist.