PepsiCo Raises Prices as Analysts Lower Price Targets
PepsiCo will increase prices on snacks and soda in 2027 following market share losses and price target cuts from several financial firms.
PepsiCo, Inc. will raise prices on soda, chips, and dips in 2027 to offset cost inflation. This move follows a series of cautious outlooks from financial institutions citing North American demand issues and market share losses in the United States.
TD Cowen lowered its price target for the company from $145 to $133 and reduced earnings per share estimates for fiscal years 2026 and 2027. The firm maintained a Hold rating, noting a shifting management narrative regarding affordability. Similar actions were taken by Deutsche Bank, which downgraded the stock to Hold, and BNP Paribas Exane, which lowered its price target to $161.
In separate corporate developments, the company appointed Joaquin Duato, Chairman and CEO of Johnson & Johnson, to its board of directors and Audit Committee effective December 1, 2026. To manage rising costs, the company also announced it will stop covering weight-loss drugs in employee health insurance plans starting in October.
