PepsiCo: stock falls on Morgan Stanley downgrade

(CercleFinance.com) - PepsiCo shares lost ground on the New York Stock Exchange on Friday following a downgrade by Morgan Stanley, which lowered its recommendation to 'equal weight'.


In a research note, the US investment bank said it was concerned about the American food group's growth, sales trends and market share losses, which are not benefiting from greater use of promotions.

The data show that Pepsi's market share in the US is deteriorating, and if recent reinvestments (so far financed by cost reductions) do not bear fruit, then the need to launch new investments in 2025 will undoubtedly result in earnings per share (EPS) growth below its long-term algorithm, the New York broker warns.

Its analysts are therefore dropping their 'Overweight' recommendation, while maintaining their target price of $185.

Following these comments, PepsiCo shares closed down 2% on Friday, while the S&P 500 index ended the week down 0.2% in comparison.


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