PepsiCo rises after JP Morgan upgrades to "overweight"

Shares of beverage and snacks company PepsiCo PEP.O up 1.4% at $146.66 premarket after J.P. Morgan upgrades to "overweight" from "neutral"

Brokerage also raises PT to $164 from $151, avg median PT as per LSEG data is $164

JPM sees EBIT margin expansion of ~50 bps in 2026, aided by record productivity and FX flipping from headwind in 2025 to tailwind in 2026

JPM expects PepsiCo's growth in 2026 to come from three areas: launching new products, making some packs cheaper, and cutting costs to work more efficiently

JPM notes snack sales are starting to improve, stores are giving PepsiCo more shelf space, and recent scanner data show that lowering prices or offering better value makes customers buy more

PEP stock down 4.9% YTD, as of last close