Analysts on Wall Street Lower Ratings for These 5 Stocks

02. PepsiCo, Inc. (NASDAQ:PEP)

Price Reaction after the Downgrade: -0.96 (-0.57%)

On December 19, JPMorgan analyst Andrea Teixeira downgraded PepsiCo, Inc. (NASDAQ:PEP) from Overweight to Neutral and reduced the price target from $185.00 to $176.00. This action was taken in conjunction with the release of JPMorgan’s 2024 Year Ahead Outlook. PepsiCo, Inc. (NASDAQ:PEP) operates in the consumer goods industry, primarily focused on beverages and snacks. In the downgrade note, Teixeira acknowledged that there are no fundamental issues with PepsiCo, Inc. (NASDAQ:PEP) and expressed confidence in the company’s ability to achieve its 2024 outlook. This outlook includes a high-end projection of its long-term financial algorithm, featuring 4-6% organic sales growth and high single-digit foreign exchange-neutral earnings per share (EPS) growth. Despite this confidence, the analyst believes that the potential for upward estimate revisions is diminishing, prompting the downgrade. The market response to the downgrade was a negative price reaction, as indicated by a -0.96 (-0.57%) decrease. This could be interpreted in various ways, such as investors adjusting their positions based on the analyst’s outlook or other factors influencing the stock’s performance on that day.