Overview
Jefferies reaffirmed a Hold rating on PepsiCo and kept its price target at $164.00 on Monday. That price target is close to InvestingPro's Fair Value assessment, which indicates the stock is roughly in line with fair value. PepsiCo shares were trading at $144.58, and analysts' individual targets cited in the research note span from $115 to $179.
Execution challenges highlighted
The research team pointed to several headwinds the beverage and snack company must manage as it enters 2026: reshaping parts of its portfolio, implementing price adjustments, rolling out new and reformulated products, and ramping up productivity initiatives. Jefferies emphasized that those actions need to deliver while the company tightens operational performance, creating a difficult balance between growth and cost savings.
Forecasts positioned below consensus
Reflecting those execution risks, Jefferies placed its 2026 forecasts beneath consensus estimates. Specifically, the firm's projection for PepsiCo's 2026 organic sales is 30 basis points lower than Street expectations, and its earnings-per-share forecast is $0.04 below the consensus figure.
Product timing seen as near-term read on strategy
Jefferies noted that approximately 75% of PepsiCo's new or revamped products are expected to reach the market in the first half of the year, making early-year sales trends an important yardstick for assessing how well the company is executing its innovation agenda.
Margins and leverage
Despite the operational challenges, InvestingPro data cited in the research shows PepsiCo retains robust gross profit margins, reported at 54.27%, and operates with a moderate level of debt.
Other recent analyst and company developments
Market watchers are also tracking a number of concurrent developments. Evercore ISI has an In Line rating with a $152.00 price target and expects estimates to remain stable following PepsiCo's reaffirmation of its 2025 guidance and its initial outlook for 2026. Meanwhile, JPMorgan upgraded the stock from Neutral to Overweight and raised its price target to $164.00, citing the company's innovation and productivity efforts and positioning the upgrade as a response to initiatives intended to boost shareholder value. TD Cowen reiterated its Hold stance and set a $155.00 price target, pointing to PepsiCo's "nuanced" North America strategy as a constructive element.
Leadership transition
PepsiCo also announced an executive move: Steven Williams will transition from his role as CEO for North America to Executive Vice President & Vice Chairman, Global Chief Commercial Officer & Corporate Affairs, effective December 28, 2025. The company has not provided information about his successor.
Market context
Taken together, these analyst actions and the internal changes at PepsiCo reflect ongoing strategic adjustments and continuing market evaluation of the company's ability to execute against a packed agenda of product launches, pricing and productivity programs as it heads into 2026.
Key points
- Jefferies maintained a Hold rating and a $164.00 price target, with its forecasts for 2026 set below consensus for both organic sales and EPS.
- PepsiCo is managing portfolio changes, pricing moves, and a concentrated wave of product launches—75% scheduled in the first half of the year—while driving productivity measures.
- Other analyst actions are mixed: Evercore ISI sees estimate stability with a $152.00 target, JPMorgan upgraded to Overweight with a $164.00 target, and TD Cowen reiterated Hold at $155.00.
Risks and uncertainties
- Execution risk on product rollouts and reformulations, given the heavy concentration of new items entering the market early in the year - impacts consumer staples and retail performance.
- Difficulty balancing growth initiatives with cost-cutting and productivity measures, which could affect near-term top-line and margin outcomes - relevant to investors and credit markets.
- Executive transition at the North America leadership level with no successor named, creating short-term uncertainty around commercial leadership and strategy execution - affecting corporate governance and operational continuity.