Goldman Sachs analyst Bonnie Herzog has lowered the target price of PepsiCo (PEP) from $180 to $165, while maintaining a "buy" rating for the stock.

In a research report, this analyst told investors that PepsiCo's third-quarter performance slightly exceeded the expectations that had been lowered by the market before the financial report was released. Organic sales growth amounted to 3.1%, which is higher than the market consensus of 2.9% and also higher than the 2.4% seen in the second quarter.

Goldman Sachs stated that despite solid performance in the third quarter, management has chosen to narrow the guidance for organic sales growth in fiscal year 2026 to around 3%, from the previous forecast range of 2% to 4%. At the same time, the company now expects earnings per share growth at a fixed exchange rate to be only 1% to 2%, which is lower than the previous forecast range of "4% to 6% at the lower end."

Goldman Sachs added that in the longer term, despite some short-term obstacles, PepsiCo should still be able to achieve sustainable average annual double-digit organic sales growth over the next decade.

This article was originally published on TheFly.