TD Cowen Lifts PT on PepsiCo (PEP) to $165 From $162 – Here’s Why

Group 1: Company Performance and Outlook - PepsiCo, Inc. has received a price target increase from TD Cowen, raising it to $165 from $162, while maintaining a Hold rating, indicating confidence in the company's turnaround strategy and its ability to achieve 4%-6% sales growth by the second half of 2026 [1] - The company reiterated its 2026 guidance, showcasing its commitment to returning to growth [1] Group 2: Product Expansion and Market Trends - On February 19, PepsiCo announced the launch of a ready-to-heat range of vegetable soups under its Alvalle brand, expanding into a new food category [2] - This product launch aligns with consumer trends towards health, convenience, and plant-based eating, catering to customers seeking nutritious ready-to-eat meals [2] - The expansion into the soup category builds on the brand's previous success in the packed gazpacho soup segment [2] Group 3: Strategic Initiatives - The new product launch is part of PepsiCo's broader strategy to enhance its food portfolio globally, following recent acquisitions such as Siete Foods and Sabra dips [3] - The company emphasizes its focus as a food entity rooted in agriculture, indicating a commitment to diversifying its offerings [3] Group 4: Company Overview - PepsiCo operates in various segments including Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, and regions such as Latin America, Europe, Africa, Middle East, South Asia, and Asia Pacific [4]