Deutsche Bank Maintains a 'Buy' on Pepsico (PEP); Succession Plan Highlights Importance of Fritos Brand

Deutsche Bank maintains a 'Buy' on Pepsico (NYSE: PEP) price target of $70.00.

Deutsche analyst said, "New organizational structure announcement highlights importance of growing Frito...PEP announced this morning that John Compton has been named president of PepsiCo, assuming responsibility for all of the company’s existing global category groups, Global operations, Global Marketing and Corporate strategy. Mr. Compton was PepsiCo’s Americas Foods CEO until this announcement. The company also announced that it is rehiring Brian Cornell, previously CEO of Sam’s Club (NYSE: WMT) until January this year, as CEO, PepsiCo Americas Foods."

"...Pepsi seems poised to reinvigorate the core, freeing up funds to boost marketing behind core Pepsi, Gatorade and Tropicana brands and dominant but slower growing Frito-Lay equities. With shares relatively cheap, even off a depressed earnings base and few believing company can pull off the turnaround, we like risk/reward here and maintain our rating and PT."

For an analyst ratings summary and ratings history on Pepsico click here. For more ratings news on Pepsico click here.

Shares of Pepsico closed at $63.15 yesterday.

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