Beverage giant PepsiCo (PEP) has received a bullish call from JPMorgan analyst Andrea Teixeira. She upgraded the stock to Buy from Hold and raised the price target to $164 (10.1% upside potential) from $151. The analyst expects PepsiCo’s new products, stronger marketing, and productivity savings to deliver high single-digit shareholder returns in 2026.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Further, Teixeira believes that PepsiCo’s valuation still trades at a “steep” high‑teens discount compared to peers, making the stock attractive.
Analyst Sees Mid‑ to High‑Single-Digit EPS Growth
The analyst spoke with PepsiCo’s management after its recent press release outlining strategic priorities to enhance shareholder value, including preliminary 2026 guidance.
Supported by shareholder Elliott Investment Management, the plan focuses on affordability, innovation, and cost reductions, with PepsiCo Foods North America playing a central role through product restaging, new launches such as Doritos Protein, and SKU rationalization.
The analyst believes that these goals plus stronger revenue should support mid‑ to high‑single‑digit EPS growth for PepsiCo in 2026.
At the same time, management expects full-year 2026 organic revenue growth of 2% to 4%, net revenue growth of 4% to 6% including acquisitions and FX benefits, and core EPS growth between 5% and 7%.
Is PEP Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on PepsiCo stock based on five Buys and eight Holds. The average PEP stock price target of $158.92 indicates 6.75% upside potential. PEP stock is up 11.4% in the past six months.
