PepsiCo price target lowered to $153 from $168 at Morgan Stanley

Morgan Stanley analyst Dara Mohsenian lowered the firm’s price target on PepsiCo (PEP) to $153 from $168 and keeps an Equal Weight rating on the shares. PepsiCo continues to struggle with muted organic sales growth, particularly in its high margin Frito Lay North America segment, with a 4% volume decline in Q1 and an 8% year-over-year EPS decline in Q1, the analyst tells investors. The firm worries U.S. organic sales growth struggles will continue, with snacks category challenges and recent fixes bearing little fruit, along with structural U.S. beverage market share pressure, but notes the multiple is already compressed after a further pullback post-earnings.