Citi Maintains Buy on PepsiCo, Lowers Price Target to $170

Citi lowered its price target on PepsiCo, Inc. (NASDAQ:PEP) to $170 from $182, while maintaining a Buy rating on the stock. The revision comes as part of a preview of the company's second-quarter results.

Rating Change

• Previous Rating: Buy, price target $182.
• Current Rating: Buy, price target $170.

Analyst Rationale

Citi analysts expect PepsiCo to report earnings per share (EPS) of $2.18 for Q2, lower than previous estimates. However, the bank remains optimistic about the company's long-term performance, citing strong brand portfolio and stability in the consumer defensive sector.

Context

PepsiCo shares currently trade near $165, down about 5% year-to-date. Other analysts have mixed views, with price targets ranging from $160 to $190.

Conclusion

The lowered price target reflects a more cautious near-term outlook for Q2, but the maintained Buy rating signals confidence in long-term prospects. Investors may see an opportunity to accumulate at current levels.