RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)

PepsiCo, Inc. (NASDAQ:PEP) is one of the 8 Worst Blue Chip Stocks to Buy Now.

On July 10, 2026, RBC Capital lowered the firm’s price target on PepsiCo, Inc. (NASDAQ:PEP) to $161 from $163 and kept a Sector Perform rating on the shares. RBC Capital said the company reported a mixed quarter, leaving investors waiting for signs of a sustainable turn. RBC Capital said PepsiCo’s international business remains impressive and a consistent bright spot, while the domestic business continues to fall short amid a more difficult consumer environment.

Also on July 10, Deutsche Bank lowered the firm’s price target on PepsiCo to $155 from $168 and kept a Buy rating on the shares. Deutsche Bank said the PepsiCo Foods North America recovery is “still half-baked,” though international momentum continues.

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On July 9, PepsiCo reported Q2 core EPS of $2.20, compared with consensus of $2.21, and revenue of $24.18B, compared with consensus of $23.96B. For 2026, the company continues to expect organic revenue to increase between 2% and 4%, core constant currency EPS to increase between 4% and 6%, a core annual effective tax rate of approximately 22%, capital spending below 5% of net revenue, a free cash flow conversion ratio of at least 80%, and total cash returns to shareholders of approximately $8.9B, including dividends of $7.9B and share repurchases of $1.0B.

PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells beverages and convenient foods worldwide.

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