RBC Maintains Hold on PepsiCo, Cites Revenue Pressures and Tepid Near-Term Outlook

PepsiCo, Inc. (NASDAQ:PEP) is one of the Best Stagflation Stocks to Buy Now. On June 24, RBC Capital reaffirmed its Sector Perform rating on PepsiCo (NASDAQ: PEP) and kept its price target steady at $148, essentially signaling a wait-and-see approach as the company works through ongoing revenue struggles.

The firm flagged PepsiCo’s underperformance as a sticking point for investors, many of whom are holding back, unsure whether the bottom is in. RBC doesn’t see an imminent rebound; in fact, they warned the company’s top-line pressures could intensify before recovery kicks in.

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For sentiment to shift, RBC says PepsiCo (NASDAQ:PEP) needs to spark growth again — whether through smarter pricing moves, sharper product innovation, or a helping hand from a better macro environment. Until those levers start moving in unison, the firm views the stock’s upside as limited in the near term.

Despite the cautious tone, RBC emphasized its respect for PepsiCo’s brand power and long-term potential, but the message was clear: not quite the moment to pounce. These headwinds notwithstanding, PepsiCo is a strong stagflation play.

PepsiCo is a balanced powerhouse—renowned for snack brands like Lay’s, Doritos, Cheetos, and Quaker, alongside beverage favorites including Pepsi, Gatorade, and Bubly.

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Disclosure: None.