TD Cowen increased its price target for PepsiCo (NASDAQ:PEP) to $162.00 from $155.00 and left its rating on the shares at Hold. At the time of the note, PepsiCo was trading at $166.42, which the firm described as slightly above the new target and close to the stock's 52-week high of $163.44. An InvestingPro Fair Value assessment cited in the coverage indicates the stock appears undervalued under that methodology.
The price-target revision followed PepsiCo's fourth-quarter earnings release. Organic sales rose 2%, matching expectations, and that pace aligns with the company’s reported revenue growth of 2.25% over the past twelve months. Management reiterated its fiscal year 2026 guidance; consensus analyst estimates included in the coverage call for EPS of $8.62 for FY2026.
TD Cowen analyst Robert Moskow attributed the favorable market response to growing confidence in sequential improvement at PepsiCo's Frito-Lay segment. Moskow pointed to price investments and new product rollouts as key drivers behind that improvement.
Management remarks highlighted by TD Cowen noted expectations for double-digit percentage distribution gains at retailers that adopt the company’s plans during their March and April reset periods. Despite those anticipated distribution increases, PepsiCo executives do not expect a significant change to the company's Price/Mix metrics, a conclusion TD Cowen described in its write-up as "odd."
In related analyst activity, PepsiCo also released fourth-quarter 2025 results that beat consensus estimates. The company reported EPS of $2.26, modestly above the $2.24 forecast, and revenue of $29.34 billion versus the anticipated $28.98 billion.
Following the quarterly results, Wells Fargo revised its price target on PepsiCo upward to $165 from $154 while maintaining an Equal Weight rating. Jefferies reiterated a Hold rating and emphasized PepsiCo’s refreshed strategy for 2026, which the firm summarized as focusing on affordability, innovation, and improved execution.
Both Wells Fargo and Jefferies framed their viewpoints as cautiously optimistic, reflecting measured support for the company’s strategic direction without moving to more favorable ratings. The combination of the quarterly beats, guidance reiteration, and commentary on Frito-Lay's momentum has kept investor and analyst attention focused on PepsiCo’s performance and near-term prospects.
These developments underscore ongoing market interest in the packaged foods and beverages sector, particularly around execution of merchandising and product initiatives that affect retailer distribution and price/mix dynamics. For now, major brokerages are adjusting targets but generally retaining neutral-to-hold stances on the stock.