Deutsche Bank cuts PepsiCo to Hold and lowers target to $138

Deutsche Bank downgraded PepsiCo to Hold from Buy in a research note on Monday, September 28, 2026. The firm reduced its price target on the stock to $138 from $155.

Analyst Steve Powers stated that the bank has less confidence in the company's recovery across North America. He noted that turnaround initiatives have produced mixed or short-lived benefits. Those efforts included price cuts, new products, additional shelf space, brand refreshes and cost savings. Powers explained that both the food and beverage divisions in the region continue to struggle with sustaining sales, market share and profitability.

According to Powers, some issues stem from the pandemic period, when excessive price increases on snacks alienated consumers. PepsiCo also invested heavily in capacity and headcount during a time of elevated growth forecasts. Consequently, the company faces an elevated cost structure while consumer demand remains structurally soft.

Deutsche Bank trimmed its 2026 earnings per share forecast for PepsiCo to $8.55 from $8.58, matching consensus expectations. For 2027, the bank cut its earnings estimate to $8.61 from $8.88, landing below the consensus estimate of $8.97. Powers also highlighted emerging risks to international momentum alongside the absence of clear catalysts.