PepsiCo Inc. shares slipped overnight Thursday after analysts cut price targets following the company's downward adjustment to its earnings outlook after fiscal second-quarter results. Evercore ISI reduced its target to $150 from $170, Piper Sandler lowered to $176 from $178, and UBS slashed to $159 from $172. The downgrades followed weaker consumer demand trends, particularly in the U.S. market, with PepsiCo linking some weakness to lower consumer spending on impulse purchases. Investors weighed concerns about the snack and beverage giant's path to future growth amid softening demand.
Evercore ISI Cuts PepsiCo Stocks Price Target to $150
Evercore ISI reduced its price target for PepsiCo to $150 from $170 while maintaining an 'In Line' rating. The firm said the company's move toward the lower end of its earnings-per-share forecast was not unexpected, but it still contributed to a decline in investor sentiment after the earnings call.
The analyst said PepsiCo linked some of its weaknesses to lower U.S. consumer spending, especially in smaller, impulse purchases, due in part to higher gas prices. However, Evercore ISI believes those factors do not fully explain the company's struggles, saying "that's just part of the story."
Piper Sandler Lowers Target While Maintaining Overweight Rating
Piper Sandler analyst Michael Lavery lowered his PepsiCo price target to $176 from $178 but kept an 'Overweight' rating on the stock after reviewing the company's Q2 results and outlook. PepsiCo stock edged 0.1% lower overnight on Thursday.
UBS Reduces Target to $159 and Maintains Buy Rating
UBS analyst Peter Grom slashed his price target for PepsiCo to $159 from $172, while keeping a 'Buy' rating on the stock. Grom said PepsiCo's Q2 results showed slight improvement and the company kept its 2026 forecasts unchanged.
UBS said it remains "hopeful" that PepsiCo's performance in North America can improve, though the firm expects the recovery to develop at a measured pace. Grom believes investors may need to temper expectations, with organic sales expansion potentially settling within a 2%-4% range.
PepsiCo Issues 2026 Earnings Guidance
Pepsi said it expects costs for raw materials and other inputs to rise further in the second half of the year and expects core constant currency EPS growth of 4% to 6% and organic revenue growth of 2% to 4% for 2026.
Retail Traders Show Extremely Bullish Sentiment on Stocktwits
On Stocktwits, retail sentiment around the stock improved to 'extremely bullish' from 'bullish' territory the previous day, with a 568% surge in message volume over the last 24 hours.
A user said, "Missed earnings as North American demand stays soft. Consumers are clearly tightening up, and staples aren't getting a free pass here. Defensive name, but the tape is treating weak volume/budget pressure as the main story. Watch if buyers defend support or if this turns into a lower-high setup."
Another user said, "$PEP Good long term, secure player at a cheap discount. A lot of similarities to $NKE actually..."
PEP stock has declined nearly 4% year-to-date.
FAQ
Why did analysts cut PepsiCo's price targets overnight Thursday?
Analysts cut price targets after PepsiCo adjusted its earnings outlook downward following fiscal second-quarter results. Evercore ISI reduced its target to $150 from $170, Piper Sandler lowered to $176 from $178, and UBS slashed to $159 from $172.
What is PepsiCo's earnings guidance for 2026?
PepsiCo expects core constant currency EPS growth of 4% to 6% and organic revenue growth of 2% to 4% for 2026. The company also expects costs for raw materials and other inputs to rise further in the second half of the year.
How did PepsiCo stocks perform overnight Thursday?
PepsiCo stock edged 0.1% lower overnight on Thursday. Year-to-date, PEP stock has declined nearly 4%.
