Street Calls of the Week
Investing.com - RBC Capital maintained its Sector Perform rating and $145.00 price target on Pepsico (NASDAQ:PEP), currently trading at $148.64, following the company’s recent earnings report. The beverage giant, with a market cap of $204 billion and impressive gross profit margins of 54.68%, continues to demonstrate financial resilience. According to InvestingPro analysis, PepsiCo trades near its Fair Value, suggesting balanced market pricing.
The research firm described the quarter as "straightforward," noting that Pepsico continues to face challenges with its domestic top-line performance while also experiencing "pockets of international softness."
RBC Capital acknowledged that Pepsico demonstrated better bottom-line performance during the quarter and is "moving with a greater sense of urgency" to address its issues.
Despite these efforts, the analyst firm cautioned that Pepsico’s problems "are by no means fixed" and maintained that the "timeline to recovery is cloudy at this point."
RBC Capital indicated it remains below algorithm for Pepsico’s 2026 projections until the company shows "greater momentum domestically," supporting its decision to maintain the Sector Perform rating.
In other recent news, PepsiCo reported third-quarter 2025 earnings that surpassed analysts’ expectations, with earnings per share reaching $2.29 compared to the forecast of $2.26. The company’s revenue also exceeded predictions, coming in at $23.94 billion against an anticipated $23.86 billion. These results highlight PepsiCo’s strong financial performance during this period. Additionally, Wells Fargo adjusted its price target for PepsiCo to $154 from $150, maintaining an Equal Weight rating. This adjustment reflects ongoing discussions about PepsiCo’s sales growth and profit power, especially in light of its strong double-digit profit growth exiting the fourth quarter of 2025. These recent developments provide investors with insights into PepsiCo’s financial health and market positioning.
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