Barclays Cuts Price Target on PepsiCo, Flags Slowing Volume Growth
PEP•Barclays cut its 12-month price target on PepsiCo and warned that the company’s turnaround is losing steam ahead of second-quarter earnings. The brokerage cited slowing volume recovery and sustained input cost pressures as risks to near-term margin expansion.
1. Barclays Lowers Price Target
Barclays trimmed its 12-month price target on PepsiCo by a mid-single-digit percentage, reflecting concerns over slowing beverage and snack volume recovery. The move underscores growing skepticism around the company’s ability to sustain its recent turnaround trajectory.
2. Turnaround Risks Highlighted
Analysts warned that ongoing input cost inflation and heightened promotional activity could erode PepsiCo’s margin gains in the second quarter. The firm noted that cost-cutting and product-mix strategies may not offset softer consumer demand, posing potential earnings risks.
