Barclays Sees Defensive Appeal in PepsiCo (PEP) but Flags 2026 Risks

PepsiCo, Inc. (NASDAQ:PEP) is included among the 15 Best S&P 500 Dividend Stocks to Buy in 2026.

On January 16, Barclays raised PepsiCo, Inc. (NASDAQ:PEP) price target to $148 from $144 and kept an Equal Weight rating on the stock. The firm updated price targets across the consumer staples group as part of its Q4 earnings preview. Barclays said the recent “enthusiasm” around PepsiCo shares reflects “a flight to safety.” At the same time, the analyst said the firm remains concerned about company- and sector-level fundamentals. Barclays also warned that oil and currency headwinds could show up in 2026, according to the research note.

In a separate development, a January 21 Reuters report said Engie has secured a 10-year agreement to supply biomethane for PepsiCo UK. Engie described it as the first deal of this kind between a biomethane producer and a food industry company in Britain.

Under the agreement, PepsiCo UK will purchase 60 gigawatt hours of biomethane each year from Engie’s newly built anaerobic digestion plant in Northern England. The facility is expected to start operating in the second half of 2027. Engie said it will deliver renewable gas equivalent to the annual consumption of about 5,000 households.

Britain’s Department for Energy Security valued the investment at £70 million ($94 million).

PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage company that manufactures, markets, and sells a large portfolio of snacks, drinks, and breakfast items, including major brands.

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