Barclays Cuts PepsiCo Price Target Ahead of Q2 Earnings
Barclays cut its price target on PepsiCo (PEP) from $180 to $165, maintaining an 'equal weight' rating, citing slowing North American demand and a weakening turnaround momentum.
Key Numbers
Barclays lowered its price target on PepsiCo (PEP) from $180 to $165, while keeping an 'equal weight' rating, ahead of the company's Q2 2025 earnings release. The revision reflects concerns that the company's turnaround efforts are losing steam in the North American market.
Rating Change
Previously, Barclays had a price target of $180 with an 'equal weight' rating. The new price target is $165 with the same rating.
Analyst Rationale
Barclays analysts note that North American demand is slowing, undermining the effectiveness of PepsiCo's turnaround strategy. However, international growth remains a key source of optimism, as the company continues to perform well in overseas markets.
Context
PepsiCo's stock currently trades around $158, below the new price target. Other analysts hold mixed views; some see the challenges as temporary, while others echo Barclays' caution on domestic demand pressures.
What to Make of It
The price target cut signals increased caution on PepsiCo's near-term performance ahead of its Q2 earnings. Investors should monitor the upcoming results to assess how the company balances international growth with domestic headwinds.
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