Jefferies maintained a Hold rating on PepsiCo Inc. stock and left its price target at $164.00, a level only slightly above the prevailing share price of $162.85. The research house described PepsiCo’s updated 2026 plan as pragmatic and well-received by investors but emphasized that execution will determine whether current improvements become durable.
The firm summarized the company’s strategic priorities for the coming years as affordability, innovation and sharper execution. Jefferies characterized that mix as sensible and noted positive market reception, but it stopped short of upgrading its view until tangible progress appears in consumer metrics.
PepsiCo’s financial profile was cited as a strength: the company reported gross profit margins of 54.15% and generated annual revenue of $93.92 billion. The stock has risen 13.47% year-to-date, reflecting investor appetite for the beverage and snack giant amid these fundamentals.
Jefferies flagged the first half of the year as a critical window. Consumer response during that period will be important in determining whether the improving trends documented by management can continue or whether a new strategic approach will be required. The analyst team expressed cautious optimism about management’s readiness to consider all options intended to create shareholder value, but reiterated that visible evidence of improvement is a prerequisite for altering its neutral stance.
Recent quarterly results provided additional context. PepsiCo reported fourth-quarter 2025 earnings that modestly exceeded Wall Street expectations: adjusted earnings per share of $2.26 versus an expected $2.24, and revenue of $29.34 billion compared with a consensus figure of $28.98 billion.
Following the quarter, Wells Fargo adjusted its own view by raising its price target for PepsiCo to $165 from $154 while maintaining an Equal Weight rating on the shares. That move reflects a degree of confidence in PepsiCo’s near-term financial performance, even as other analysts await clearer signs of sustained improvement.
For now, Jefferies remains neutral. The firm said it will be looking for concrete evidence of improving consumer trends and execution before changing its rating or outlook on the company.