PepsiCo (PEP) Price Target Trimmed at JP Morgan. Here is Why

With an annual dividend yield of 4.10%, PepsiCo, Inc. (NASDAQ:PEP) is included among the 14 Best Blue Chip Dividend Stocks to Buy According to Hedge Funds.

ja-san-miguel-xYSp0kkIUio-unsplash

PepsiCo, Inc. (NASDAQ:PEP) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide.

On July 1, JPMorgan lowered its price recommendation on PepsiCo, Inc. (NASDAQ:PEP) from $178 to $170, but kept an ‘Overweight’ rating on the shares. The revised target, which still implies an upside of almost 18% from the current price level, comes ahead of the company’s Q2 earnings report on July 9.

JPMorgan trimmed its Q2 estimates for PepsiCo, Inc. (NASDAQ:PEP) to reflect the lower price and product mix assumptions. That said, the analyst firm highlighted Pepsi’s strong track record of rarely falling behind earnings estimates, and with recent channel data remaining weak, investor expectations for the quarter are already low.

PepsiCo, Inc. (NASDAQ:PEP) is expecting its organic revenue to increase between 2% to 4% in FY 2026, while it is guiding a core constant currency EPS growth in the range of 4% to 6% for the year. The company is also targeting shareholder returns of approximately $8.9 billion, including $7.9 billion of dividends and $1 billion of share repurchases.

READ NEXT: 10 Energy Stocks with Highest Dividends and 12 Best NYSE Stocks to Buy for Dividends

Disclosure: None. Follow Insider Monkey on Google News.