From The Street of Dreams: PepsiCo Targets

We have been ahead of this, as I have for a month or so expected disappointing results and guidance for $PEP.

I have recently begun to buy back the shares….

PepsiCo price target lowered to $133 from $145 at TD Cowen: TD Cowen lowered the firm’s price target on PepsiCo to $133 from $145 and keeps a Hold rating on the shares. The firm is citing a Bloomberg article quoting a management spokesperson which indicates that the company will raise prices on chips, soda, and dips in 2027 to offset cost inflation, the analyst tells investors in a research note. The management’s shifting narrative on affordability and continued market share losses in the U.S. increases the risk profile for Pepsi in 2027, TD Cowen added.

PepsiCo downgraded to Hold from Buy at Deutsche Bank: Deutsche Bank downgraded PepsiCo to Hold from Buy with a price target of $138, down from $155. The firm cites less certainty in PepsiCo’s strategic direction in North America for the downgrade. Deutsche has less conviction in the company’s ability to deliver a “durable recovery” in PepsiCo Foods North America. Many of PepsiCo’s initiatives “have produced mixed or fleeting benefits,” with PFNA still struggling to generate sustained improvement in consumption, organic growth, share, or operating leverage, the analyst tells investors in a research note. Deutsche cut its estimates for PepsiCo to reflect “lackluster” North American consumption and escalating cost pressures.

Long: PEP  S

Buying Some Pepsi

I am starting to add to a very small $PEP position at $129.64.

The recent decline may have discounted the weak quarterly EPS report that we have expected.

Position: Long PEP (S)

Things I Did Today

Here are today’s things: 

* I covered the balance of my short indices:

$SPY $760

$QQQ $717.65

* I added to $MSOS common at $4.81 and calls, and to Trulieve ($TRLV) at $10.85 and Green Thumb (GTBIF) at $7.29.

* I added small to $PEP at $130.09.

* I added to $GRNY short at $27.71

Position: Long MSOS common (VL) and calls (M), TRLV (VS), GTBIF (S), PEP (VS); Short GRNY (M)

My Pepsi Plan

If PepsiCo’s ($PEP) shares fall off a weaker-than-expected Q3 EPS release (our expectation based upon our research previously mentioned), I plan to go large.

Position: Long PEP (VS)

Covering, Adding and Bidding

I covered some $JOET at $44.97 and $GRNY at $27.32. 

I’m also adding to $MSOS long and bidding for consumer staples (under the market) — $PEP, $PG, $KMB.  

Position: Long MSOS common (VL) and calls (S), PEP (S), PG (S), KMB (S); Short JOET (VS), GRNY (VS).  

Pepsi Update

I would normally have repurchased $PEP on the move below $140, but our research now suggests that Q3 2026 has been challenging.

Position: Long PEP (VS) 

Some Midday Observations

* Market breadth has improved.

* The Russell is crowing relative to the senior averages.

* Bonds can’t rally.

* Financials can’t hold their gains.

* Many large-cap tech stocks continue to show signs of rolling over. 

* It is all $NVDA, all the time.

* On the other hand, consumer non-durables ($KO, $PEP, $PG, $KMB, etc.) are suddenly rallying today after days of weakness.

* The business media is preoccupied with silly data on September weakness. (Another CNBC Blather Survey — there have been nine discussions of this thus far today.)

Bottom Line

A sloppy and trendless tape.

Position: Long PG (VS), PEP (VS), KO (VS), KMB (VS)

Good Sale on Pepsi

Good sale on PepsiCo ($PEP) on  Monday-Tuesday at around $144-$145.

It’s now under $140.

I am a buyer at $138ish.

Position: Long PEP (VVS)

Cutting Back on Staples

I am further reducing consumer staples exposure on the strong move today and over the last week — $PEP, $PG, $KMB and $KO.

These stocks have been reasonably good performers and stalwarts in a backdrop of volatility.

The recent advance has reduced the reward vs. risk.

Position: Long PEP (VS), PG (VS), KMB (VS), KO (VS)