RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)

RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP) Jeff Lewis Wed, July 15, 2026 at 4:25 PM GMT+2 2 min read PEP PepsiCo, Inc. (NASDAQ:PEP) is one of the 8 Worst Blue Chip Stocks to Buy Now . On July 10, 2026, RBC Capital lowered the firm's price target on PepsiCo, Inc.

(NASDAQ:PEP) to $161 from $163 and kept a Sector Perform rating on the shares. RBC Capital said the company reported a mixed quarter, leaving investors waiting for signs of a sustainable turn. RBC Capital said PepsiCo's international business remains impressive and a consistent bright spot, while the domestic business continues to fall short amid a more difficult consumer environment.

Also on July 10, Deutsche Bank lowered the firm's price target on PepsiCo to $155 from $168 and kept a Buy rating on the shares. Deutsche Bank said the PepsiCo Foods North America recovery is "still half-baked," though international momentum continues. Jim Cramer Explains Why He’s ‘Conerned’ About PepsiCo (PEP) focal point / Shutterstock.

com On July 9, PepsiCo reported Q2 core EPS of $2. 20, compared with consensus of $2. 21, and revenue of $24.

18B, compared with consensus of $23. 96B. For 2026, the company continues to expect organic revenue to increase between 2% and 4%, core constant currency EPS to increase between 4% and 6%, a core annual effective tax rate of approximately 22%, capital spending below 5% of net revenue, a free cash flow conversion ratio of at least 80%, and total cash returns to shareholders of approximately $8.

9B, including dividends of $7. 9B and share repurchases of $1. 0B.

PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells beverages and convenient foods worldwide. While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.

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