PepsiCo: Jefferies downgrades its rating

(CercleFinance.com) - Jefferies downgrades its recommendation on PepsiCo from 'buy' to 'hold', as the stock now offers only limited potential against its adjusted price target of $171 to $170, following a 7% rise in the share price since its January lows.


'Frito continues to struggle, which will weigh on the multiple. International sales remain strong and re-segmentation seems logical, but with US business still struggling, we are lowering our expectations for the first quarter", says the broker.

It may be several quarters before Frito sees an inflection, and we don't understand the drivers", adds Jefferies, which sees better opportunities in the beverage sector, including Coca-Cola.

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