JPMorgan Raises PepsiCo Price Target Amid Confidence in Pricing Power
JPMorgan has increased its price target for PepsiCo (PEP) to $159 from $158, reiterating an Overweight rating and signaling renewed optimism in the beverage and snack giant’s pricing strategy. The upward revision reflects JPMorgan’s growing confidence in PepsiCo’s ability to navigate margin pressures and sustain revenue growth in a challenging cost environment.
In a note to investors, JPMorgan analyst Andrea Teixeira highlighted improved visibility around PepsiCo’s gross margin outlook and stronger-than-expected pricing resilience. The company has effectively balanced volume performance with pricing power, a critical lever for margin expansion in the current inflationary landscape.
“PepsiCo’s pricing execution continues to outperform expectations, providing a buffer against input cost volatility,” Teixeira noted, citing a favorable mix across key segments like Frito-Lay and Pepsi Beverages North America.
JPMorgan also pointed to consistent sales momentum and robust international performance, particularly in emerging markets. These trends support PepsiCo’s ability to maintain top-line growth despite macroeconomic headwinds and continued shifts in consumer behavior.
The updated price target implies moderate upside from current trading levels, reinforcing investor sentiment that PepsiCo remains a strong defensive play within the FMCG sector. The company’s portfolio of well-established brands and global distribution network position it favorably against peers amid ongoing supply chain complexities and fluctuating commodity prices.
For FMCG professionals, the revised target emphasizes the importance of pricing agility and supply chain resilience. As input costs remain elevated across the sector, brands with strong pricing power and diversification—both geographically and across categories—will be better positioned to drive profitability.
PepsiCo is expected to report its next quarterly earnings in early July, which will provide further insight into margin trends, market share performance, and consumer demand resilience across its snack and beverage businesses.