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PepsiCo downgraded to Hold from Buy at Jefferies

PepsiCo downgraded to Hold from Buy at Jefferies

Jefferies downgraded PepsiCo (PEP) to Hold from Buy with a price target of $170, down from $171. The stock offers limited upside after rallying 7% from the January lows, the analyst tells investors in a research note. The firm says Frito Lay continues to struggle, which will weigh on PepsiCo’s multiple. While the company’s international remains strong, the U.S. business is “still struggling,” the analyst tells investors in a research note. Jefferies believes it may be several quarters before Frito inflects. Better opportunities exist elsewhere in beverages, the firm concludes.

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