Deutsche Bank Says PepsiCo (PEP) Needs to Win Investor Confidence

PepsiCo, Inc. (NASDAQ:PEP) is one of the 10 Best Dip Stocks to Buy According to BillionairesOn June 27, Deutsche Bank released a note regarding PepsiCo, Inc. (NASDAQ:PEP), highlighting that the company needs to win investor confidence as its current strategy is under question due to dropping snack consumption trends in the US.

PepsiCo, Inc. (NASDAQ:PEP) is set to release its Q2 2025 results on July 17. Deutsche Bank analyst Steve Powers noted that with the earnings call approaching, the company needs to show some increased sense of urgency to gain investor confidence. He added that although the bank continues to believe that the intrinsic value of PepsiCo, Inc. (NASDAQ:PEP) exceeds its current trading value, the declining consumption trends in the US have disappointed the bull case for the company.

Deutsche Bank Says PepsiCo (PEP) Needs to Win Investor Confidence

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

Powers noted that the upcoming earnings call will be important for the company as it should point to some meaningful conversation regarding how the future will be different from the past.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.