JPMorgan Downgrades PepsiCo Amid Stalled North America Turnaround

PepsiCo's turnaround efforts in North America have hit a snag, according to JPMorgan analyst Andrea Teixeira. In a note to clients, she downgraded PepsiCo's rating to Neutral from Overweight and slashed her price target by 19% to $138 from $170.

The move follows Deutsche Bank's decision earlier Monday to cut PepsiCo to Hold from Buy, with analyst Steve Powers trimming his price target to $138 from $155. Teixeira cited PepsiCo's North American business as struggling despite a series of strategic interventions, including recipe changes, refreshed packaging, and increased advertising spending.

Earnings estimates have been trimmed, with JPMorgan reducing its 2027 earnings per share forecast to $8.86 from $9.05, and lowering its 2028 estimate to $9.33 from $9.57. Both figures now sit below Street consensus of $8.95 and $9.47, respectively.