J.P. Morgan analyst Andrea Teixeira downgraded PepsiCo to Neutral from Overweight and cut the firm's price target by 19% to $138, arguing that earnings expectations may still need to come down. PepsiCo shares fell more than 1% Tuesday. The biggest concern remains North America, particularly the company's snack business, where changes to ingredients and packaging along with lower prices have so far failed to produce a meaningful improvement in sales at Frito-Lay North America. J.P. Morgan lowered its fiscal 2027 EPS estimate to $8.86 from $9.05 and its 2028 forecast to $9.33 from $9.57, and now expects 2.8% organic sales growth and EPS of $2.29 for the third quarter, down from previous estimates of 3.2% and $2.31. PepsiCo reports third-quarter results before the market opens Oct. 8.
PepsiCo IncJ.P. Morgan downgraded PepsiCo to Neutral and cut its price target 19% to $138, lowering EPS and sales estimates
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