Deutsche Bank Sees Mounting Industry Pressures, Trims PepsiCo (PEP) Target

PepsiCo, Inc. (NASDAQ:PEP) is included among the 13 Best Diversified Dividend Stocks to Buy Right Now.

On March 30, Deutsche Bank analyst Steve Powers lowered the firm’s price recommendation on PepsiCo, Inc. (NASDAQ:PEP) to $169 from $176. It reiterated a Buy rating on the shares. The firm pointed to “legitimate and widespread pressures building” across much of the consumer packaged goods industry, tied to the conflict in the Middle East. The analyst said the group underperformed in March. Cost inflation remained a concern, along with the risk of demand softening as consumers trade down. Currency movements also weighed on performance, according to the research note.

On March 12, Piper Sandler raised its price goal on PEP to $181 from $172 and maintained an Overweight rating. The firm said it continues to favor PepsiCo and sees its targeted pricing actions as a driver of volume improvement. It pointed to examples from the second half of 2025, where certain SKUs showed clear signs of consumer responsiveness. Piper also expressed a positive view on the company’s 2026 innovation pipeline. The firm said new products are being designed to meet demand for health benefits without compromising on taste.

PepsiCo, Inc. (NASDAQ:PEP) operates as a global food and beverage company, manufacturing, marketing, and distributing products such as Pepsi, Lay’s, Gatorade, and Quaker across more than 200 countries.

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