PepsiCo Stock Gets JPMorgan Upgrade to Overweight

JPMorgan has shifted its stance on PepsiCo, upgrading the company's stock to an "overweight" rating from "neutral." This move reflects increased confidence in the food and beverage giant's future performance. Alongside the rating change, JPMorgan also raised its December 2026 price target for PepsiCo shares to $164, suggesting a potential 13% increase from current levels.

Analyst Andrea Teixeira highlighted that PepsiCo is poised for mid- to high-single digit earnings growth in the upcoming year. This projection is underpinned by more ambitious productivity goals and a strengthening top line. The analyst believes that these enhanced productivity measures will enable greater reinvestment, ultimately leading to improved profitability and higher total shareholder returns.

Furthermore, Teixeira anticipates PepsiCo will benefit from expanded shelf space and strategic affordability initiatives in the next year. Management's "everyday value" efforts have shown promising metrics in recent customer tests, indicating potential volume increases. Despite these positive developments, most analysts remain on the sidelines, with a majority holding a "hold" rating on the stock.