What’s Behind Mixed Ratings on PepsiCo, Inc. (PEP) in Wall Street

PepsiCo stock (NASDAQ:PEP) is one of the top consumer defensive stocks to buy now. On April 8, JPMorgan reiterated an Overweight rating on PepsiCo stock (NASDAQ:PEP) but lowered the price target to $172 from $176.

What’s Behind Mixed Ratings on PepsiCo, Inc. (PEP) in Wall Street

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The price target cut is in response to the company maintaining its 2026 organic sales growth at 2.5%, with earnings per share expected at $1.55. On the other hand, the investment bank lowered the company’s organic sales growth to 3.1% from 3.3%, and also lowered the earnings per share estimate to $8.54 from $8.64. The estimate is still above the consensus of $8.60 a share.

Earlier, analysts at BofA Securities reiterated a neutral rating on the stock with a $173 price target. The neutral rating aligns with expectations that the company will deliver first-quarter results in line with consensus estimates. The research firm expects the company to deliver earnings per share of $1.53 and $8.60 for the full year.

PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage leader that manufactures, markets, and sells iconic snacks (Frito-Lay, Doritos, Cheetos, Lay’s) and beverages (Pepsi, Mountain Dew, Gatorade, Aquafina).

While we acknowledge the risk and potential of PEP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PEP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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