RBC Maintains Pepsico (PEP) Price Target and Sector Perform Rating

Pepsico, Inc. (NASDAQ:PEP) is one of 10 consumer defensive stocks to buy now. 

RBC Capital held its Sector Perform rating on Pepsico, Inc. (NASDAQ:PEP) with a price target of $148, citing ongoing revenue headwinds for the food and beverage giant. The research firm pointed to the company’s “significant underperformance” as a source of concern among investors, many of whom are debating whether to adopt a more positive outlook on the stock. According to RBC Capital, the key to renewed investor confidence lies in a turnaround of PepsiCo’s top-line growth, which the firm expects to remain pressured throughout the current year. Their analysis suggests that the company’s revenue challenges may intensify before showing signs of improvement.

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RBC Capital highlighted that a recovery will likely depend on favorable shifts in the macroeconomic environment, more strategic pricing moves, and the introduction of meaningful product innovations. These factors are seen as critical to reversing the current downward trend. While recognizing PepsiCo as a strong company with a well-known portfolio of brands, RBC Capital believes it is premature to expect a bottom in the stock’s performance. For now, the firm maintains a neutral view on PepsiCo’s near-term outlook, emphasizing the need for clear evidence of revenue stabilization before upgrading its stance.

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