Key Highlights

● Netflix rose to $70.77 Tuesday after Deutsche Bank upgraded it to Buy from Hold and trimmed its target to $95.

● Deutsche Bank cited a valuation of about 18 times 2027 earnings versus 40 times at the 2025 peak.

● PepsiCo dipped after JPMorgan downgraded it to Neutral from Overweight and cut its target to $138 from $170.

● Consumer staples were among the weaker S&P 500 sectors, while communication services edged higher and long-term yields hit multi-decade highs.

Two of the most closely watched analyst calls of Tuesday, September 29, 2026, told very different stories about big-cap America. Deutsche Bank turned bullish on Netflix (NASDAQ:NFLX), arguing the market had become too pessimistic, while JPMorgan turned cautious on PepsiCo, saying its recovery had stalled.

Deutsche Bank Sees Value in Netflix

Netflix rose to $70.77 after Deutsche Bank upgraded the stock to Buy from Hold. The bank trimmed its price target to $95 from $100, but the upgrade signals it sees value after the stock's long slide, which has left the shares down about a quarter this year.

The case rests on international growth and valuation, with the stock at about 18 times 2027 earnings, compared with 40 times at the 2025 peak. Deutsche Bank said Wall Street is paying too much attention to softer trends in the domestic market, essentially betting that the market is weighing the U.S. slowdown too heavily.

JPMorgan Turns Cautious on PepsiCo

PepsiCo (NASDAQ:PEP) dipped on Tuesday after JPMorgan downgraded it to Neutral from Overweight and cut its price target to $138 from $170. The stock had closed at $128.50 on Monday. JPMorgan said the recovery appears to have stalled following the first quarter of 2026, adding that the performance of Frito-Lay, PepsiCo's snack business, has been lackluster.

The Second Downgrade in Two Days

On Monday, Deutsche Bank cut PepsiCo to Hold from Buy and lowered its target to $138 from $155, leaving both banks' targets at $138. Deutsche Bank said successive interventions and refinements suggest the underlying problems are more difficult to solve than management initially understood.

A Sector Split

The calls mirrored Tuesday's sector moves. Consumer staples, home to PepsiCo, were among the weaker S&P 500 sectors, while communication services, which includes Netflix, edged higher. Procter & Gamble (NYSE:PG) also slipped, to $148.32, with no specific reason found, and it moved with its sector. The contrast captures a broader debate over which businesses deserve a premium, and it is sharper now that the 30-year Treasury yield sits at its highest level since 2002, making steady dividend payers less attractive by comparison with bonds. Consumer confidence dropped to 81.9 from 88.6, the lowest since 2014, according to the Conference Board.

The Broader Tape

The major indexes finished lower, with the S&P 500 down 12.85 points at 7,670.84 and the Dow Jones Industrial Average down 131.59 points at 51,349.92. The Nasdaq Composite ended nearly flat at 26,797.54. The Nasdaq-100, which includes both Netflix and PepsiCo, edged higher. The VIX eased and stayed near 16, and utilities led the S&P 500's sectors.

Consumer Reads Ahead

Consumer companies will be in focus with Nike's fiscal first-quarter results on Thursday, October 1. Before that, August PCE inflation, which includes a read on consumer spending, and the third GDP estimate arrive Wednesday, September 30. The September jobs report follows Friday, October 2, and the Fed meets October 27 to 28.