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A bottle of Pepsi cola against a dark background
Photo: Investing.com / Reuters

PepsiCo Stock Slips Near $129 After Two Downgrades in a Week

SEC / PepsiCo2 min read6 sources

Why was PepsiCo stock downgraded twice this week?

PepsiCo (PEP) stock trades near $128.69, down about 11% this year, after Deutsche Bank and JPMorgan downgraded it Monday and Tuesday over doubts about its Frito-Lay turnaround.

Key numbers

Share price$128.69+0.15% Tuesday
JPMorgan price target$138from $170 (-19%)
Deutsche Bank price target$138from $155 (-11%)
Stock year to date-11.2%vs Coca-Cola +24% (per [3])
Frito-Lay North America Q2 sales-2%organic revenue vs year ago
52-week low$126.42stock about 1.8% above it

What happened

PepsiCo (PEP) stock trades near $128.69, down about 11% this year, after Deutsche Bank and JPMorgan downgraded it Monday and Tuesday over doubts about its Frito-Lay turnaround. Deutsche Bank cut it to Hold from Buy on Monday, lowering its price target (its guess for the share price in a year) to $138 from $155. JPMorgan moved to Neutral from Overweight on Tuesday and cut its target to $138 from $170. Both said the fix for Frito-Lay North America, maker of Lay's and Doritos, is stalling despite price cuts and new packaging.

Why it matters

PepsiCo is one of the world's biggest snack and drink makers, and its shares sit close to their lowest price in a year. Two large banks now doubt that lower prices and new packaging are winning shoppers back at Frito-Lay, where North American sales fell 2% last quarter. Neutral and Hold ratings mean analysts no longer expect the stock to beat the market. The next results, due October 8, will show whether the snack business is recovering.

Who this affects

Marketbearish
Low impact
Investors in a big defensive stock face fresh doubts.
Companybearish
Medium impact
Shareholders face lower price targets and a doubted turnaround.
Competitorsbullish
Low impact
Coca-Cola, up about 24% this year, looks relatively stronger.
Industrybearish
Low impact
Packaged-food makers face cautious shoppers and rising costs.

PepsiCo vs Coca-Cola, Mondelez, Kraft Heinz

PepsiCoPEP$176B+0.15%-11%14.8x
Coca-ColaKO$374B-0.39%+24%25.6x
MondelezMDLZ$76B-1.43%—18.4x
Kraft HeinzKHC$28B-0.47%—11.8x

As of 2026-09-30

How we got here

  1. PepsiCo reports Q2: Frito-Lay North America sales fall 2%; full-year outlook kept at 2-4% organic growth.

  2. Deutsche Bank cuts PepsiCo to Hold from Buy, target $138 from $155.

  3. JPMorgan cuts PepsiCo to Neutral from Overweight, target $138 from $170.

What to watch

  • PepsiCo third-quarter results, before the market opens; Frito-Lay North America sales in focus.2026-10-08
  • Whether PepsiCo keeps its 2026 outlook of 2-4% organic revenue growth and 4-6% core EPS growth.2026-10-08
  • Whether more analysts follow with rating cuts; consensus is Hold with a $152.90 average target.Q4 2026

Educational content only. Not investment advice.

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