RBC maintains neutral stance on PepsiCo, highlighting concerns about revenue growth

From Yahoo Finance: 2025-06-29 03:02:00

Pepsico, Inc. is listed as one of the top 10 consumer defensive stocks to buy now. RBC Capital maintains a Sector Perform rating on Pepsico with a price target of $148, citing revenue headwinds and underperformance as key concerns among investors. The firm believes a turnaround in revenue growth is necessary for renewed investor confidence.

RBC Capital points to favorable macroeconomic shifts, strategic pricing moves, and product innovations as essential for PepsiCo’s recovery. While recognizing the company’s strong brand portfolio, the firm maintains a neutral outlook, awaiting clear evidence of revenue stabilization before upgrading its stance on the stock. The emphasis remains on the need for improvement in top-line growth.

While acknowledging PepsiCo’s growth potential, RBC Capital believes there are AI stocks with greater promise for higher returns and limited downside risk. The firm encourages investors to consider other options with significant upside potential. For those interested, they recommend exploring the report on the cheapest AI stock for more promising investment opportunities.

Read more: RBC Maintains Pepsico (PEP) Price Target and Sector Perform Rating