PepsiCo initiated with Overweight on attractive risk/reward at Piper

Piper Sandler initiated coverage of PepsiCo (PEP) with an Overweight rating and $171 price target The firm says beverage categories generally have attractive tailwinds globally, as incomes rise in emerging markets and commercial beverages take share. While PepsiCo’s beverage business typically trails Coca-Cola’s (KO) in beverages, its Frito-Lay business is one of the best food businesses, with an extensive global reach, the analyst tells investors in a research note. Soft U.S. trends have weighed on results and the share price, but the stock’s risk/reward looks attractive at current levels, despite some remaining risk, contends Piper.