Key Highlights

● JPMorgan downgraded PepsiCo to Neutral from Overweight on September 29, 2026, and cut its price target to $138 from $170.

● The shares dipped from Monday's close of $128.50, a day after Deutsche Bank cut the stock to Hold from Buy.

● Both analysts focused on North America and Frito-Lay, saying the recovery has stalled after the first quarter of 2026.

● Constellation Brands fell to fresh 52-week lows and Procter & Gamble edged lower as consumer staples lost favor.

PepsiCo, Inc. (NASDAQ:PEP) woke up to another downgrade on Tuesday, September 29, 2026. JPMorgan analyst Andrea Teixeira cut the snack and beverage giant to Neutral from Overweight and slashed her price target to $138 from $170. The shares dipped from Monday's close of $128.50.

Downgrade Number Two

On Monday, Deutsche Bank analyst Steve Powers had cut PepsiCo to Hold from Buy and moved his price target to $138 from $155. JPMorgan's move made it the second downgrade in as many sessions, with both firms landing on the same $138 target. Back-to-back pressure stands out for a blue-chip staples company that investors usually prize for stability and dividends.

Why the Analysts Turned Cautious

Both analysts focused on PepsiCo's North American business, especially Frito-Lay. Teixeira wrote that the recovery appears to have stalled following the first quarter of 2026 and that Frito-Lay's performance has been lackluster. Powers said successive interventions and refinements suggest the underlying problems are more difficult to solve than management initially understood. Frito-Lay, the maker of Lay's, Doritos and Cheetos, has long been PepsiCo's profit engine in North America.

Staples Out of Favor

Consumer staples were among the weaker sectors as investors favored utilities and chipmakers. Constellation Brands (NYSE:STZ) extended a long losing streak to fresh 52-week lows, and Procter & Gamble (NYSE:PG) edged lower. The 30-year Treasury yield reached its highest level since 2002, and the 10-year touched its highest in roughly two decades. When bonds offer higher income, dividend-paying defensive stocks can lose some of their appeal.

The Consumer Picture

The Conference Board's consumer confidence index fell to 81.9 in September from 88.6 in August, its lowest reading since 2014 and below the 89.2 forecast. LPL Financial's Jeffrey Roach said Americans are pulling back on plans for homes, cars and big-ticket purchases.

Staples and the Indexes

The Nasdaq-100 edged higher to 30,339.33 on the chip rally, even as the S&P 500 slipped 12.85 points to 7,670.84 and the Dow Jones Industrial Average fell 131.59 points to 51,349.92. The Nasdaq Composite ended nearly flat at 26,797.54. Utilities were the best-performing S&P 500 sector, while energy finished last as oil slid. Nike reports fiscal first-quarter results on Thursday, October 1, and the September jobs report follows on Friday, October 2. The Federal Reserve meets on October 27 and 28.