J.P. Morgan downgrades PepsiCo to 'neutral'; shares fall
PEP•J.P. Morgan downgraded PepsiCo to “neutral” from “overweight” and cut its price target to $138 from $170. The brokerage said North America trends are likely to remain weaker than management expected.
1. Downgrade and outlook
J.P. Morgan cited channel data and recent price hikes, which it said strip out temporary boosts to demand, in its view that North America trends are likely to remain weaker than management expected. It described Frito-Lay North America salty snacks performance as lackluster despite interventions including reformulation, increased spending and lower prices, and said the recovery appeared to have stalled following 1Q26. The brokerage’s $138 price target represents 7.3% upside to the stock’s last close.
2. Analyst consensus
Data compiled by LSEG showed 25 analysts rated the stock “hold” on average, with a median price target of $153. PepsiCo shares had fallen about 10.5% year to date through the previous day’s close.
