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Investing.com - RBC Capital maintained its Sector Perform rating and $148.00 price target on Pepsico (NASDAQ:PEP) Tuesday, as the food and beverage giant continues to face revenue challenges.
The research firm cited PepsiCo’s "significant underperformance" as a key concern for investors, noting that many are questioning whether it’s time to take a more constructive position on the stock.
RBC Capital believes the primary catalyst needed for new investment in PepsiCo hinges on a turnaround in the company’s top-line performance, which the firm expects to remain under pressure throughout this year.
The firm’s analysis suggests PepsiCo’s revenue situation "will get worse before they get better," with recovery likely dependent on broader macroeconomic improvements, more strategic pricing adjustments, and significant product innovation.
While acknowledging PepsiCo as "a great company with great brands," RBC Capital concluded it remains too early to call a bottom for the stock, maintaining its neutral stance on the company’s near-term prospects.
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