Citi‘s Most Read - Consumer

Research evidence excerpt

Citi‘s Most Read - Consumer

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Citi's Most Read - Consumer

July 6 - July 12 13 Jul 2026 06:20:13 ET

ACMost Read Citi Global Research

As boundaries increasingly blur between conventional sectors, and as bottom-up +44-20-7500-1400

and top-down analysis converges, Citi Research offers a Super-Sector lens to help

you better understand and take advantage of widespread disruptive trends and

innovation, extending our peer analysis for greater breadth and depth. The

Consumer Super-Sector consists of the Consumer Discretionary, Consumer

Staples, and Commercial & Professional Services sectors. Please find below a

collection of our most impactful recent research in the Consumer Global Super-

Sector – we hope you find it thought-provoking.

Most Read

PepsiCo (PEP.O) - North America Challenges Lingering; Move to Neutral

We move to Neutral on PEP on continued weakness in N.America at PFNA & PBNA,

which have remained soft despite PEP’s strategic actions (price reductions,

innovation, shelf space gains). While Q2 near-term trends were pressured by

inflation impacts on consumer behaviors, especially in the c-store channel, which

could improve sequentially, we worry about lingering underlying N.America

weakness in H2/2027. PEP reiterated its 2026 outlook, now pointing to the low-

end of its +5-7% Y/Y EPS target, which still implies a material Q4 N.America-

driven reacceleration that we believe could be challenging, even net of solid int’l

results. We believe this dynamic also creates carryover risk to numbers in 2027,

when PEP will be cycling 2026’s highly active innovation period, with still elevated

cost inflation pressuring margins. As such, we move to Neutral on PEP and lower

our TP to $145 based on ~16.3x our 2027 $8.90 EPS estimate.

Neutral | Target price US$145.00