Citi cuts PepsiCo to Neutral from Buy and lowers target to $145

Citi analyst Filippo Falorni downgraded PepsiCo to Neutral from Buy on July 10 and cut the price target to $145 from $170. The bank said North American snack and beverage sales stayed weak despite price cuts and new products, and that the 5% to 7% EPS target depends on a fourth-quarter North American rebound it finds hard to underwrite. Citi also flagged 2027 headwinds from cost inflation, smaller productivity gains and GLP-1 adoption.

• Rating: Buy to Neutral; target $170 to $145
• Q2 PFNA organic sales down 2% versus flat consensus; PBNA up 1% versus 2% expected
• Citi sees 2026 EPS target relying on a Q4 North American reacceleration
• Structural 2027 headwinds named: cost inflation, smaller productivity, GLP-1 adoption