PepsiCo May See Lower Q3 Gross Margins From Tariff Pressure, 'Stretched' Frito-Lay Pricing

1. PEP shares are slightly higher, trading at $140.20. 2. BofA keeps PEP at a Neutral rating with a $150 price target. 3. Third-quarter EPS estimate remains at $2.26 amidst tariff pressure. 4. Organic sales outlook revised down to 1.8% due to weather impacts. 5. Frito-Lay experiences pricing pressure, affecting middle-tier product sales.