PepsiCo: penalized by broker downgrade
(CercleFinance.com) - PepsiCo shares were down over 2% in early trading on Wall Street, penalized by a downgrade by Jefferies (from 'buy' to 'hold'), as the stock now offers only limited potential relative to its adjusted price target of $170 (vs.
$171).
Frito continues to struggle, which will weigh on the multiple. International business remains strong and re-segmentation seems logical, but with US business still struggling, we are lowering our expectations for the first quarter, the broker says.
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