PepsiCo (PEP) and JetBlue (JBLU) have recently been upgraded by analysts who see strengthening fundamentals and successful turnaround efforts. Bay Area Ideas moved PepsiCo to a Buy as tariff pressures ease, while Albert Anthony raised JetBlue to Hold following new route announcements and cost reduction progress.
Conversely, The Kroger Co. (KR) and NIO Inc. (NIO) have seen their ratings tempered due to valuation and growth hurdles. IWA Research downgraded Kroger to Hold after a significant stock rally, and Summit Research expressed caution on NIO despite its recent profit milestone.
Upgrades
- PepsiCo (PEP): Upgrade Hold to Buy by Bay Area Ideas. The analyst notes that previous tariff headwinds are receding while organic revenue growth and margins are beginning to accelerate.
“I believe the company is well positioned with these new directions, and given how strong the demand for Poppi was from 2020 to 2024, I would say that PepsiCo has a strong growth driver for the coming years. Therefore, in addition to the positive near-term financial guidance laid out above, the long-term prospects seem strong for the company.”
- JetBlue Airways Corporation (JBLU): Upgrade to Hold by Albert Anthony. The upgrade is driven by a turnaround plan featuring new routes in Florida and Texas and progress in reducing operational costs, though high debt levels remain a concern.
“JetBlue is a case of weaker top-line growth and ROE than some key peers, as well as severe underperformance vs the S&P 500, but a significant route network covering Florida and the Caribbean, in addition to the West coast and other key destinations like Austin…For this reason, I thought it would be fair to at least give it a cautious hold rating.”
Downgrades
- The Kroger Co. (KR): Downgrade Buy to Hold by IWA Research. After a 15% recovery in the stock price, the analyst believes the current valuation reflects most of the potential upside as free cash flow is expected to normalize in 2026.
“Ultimately, KR will always depend on the environment, and there is definitely potential for the current economic conditions to worsen, which can lead to a continued rise of dollar stores and cheaper brands to Kroger’s detriment.”
- NIO Inc. (NIO): Downgrade to Hold by Summit Research. Despite the company reaching its first-ever GAAP quarterly profit, weak delivery numbers in early 2026 and rising input costs raise doubts about the sustainability of its growth targets.
“Sustained delivery weakness observed in the first two months of 2026 across NIO’s three brands remains a key risk overhang. This continues to add pressure to management’s aggressive guidance for 40% to 50% y/y volume growth in 2026 alongside quarterly operating profitability.”