Goldman Sachs Lowers Numbers on Pepsico (PEP) Ahead of Q3 Results

Goldman Sachs dropped its price target on Neutral-rated Pepsico (NYSE: PEP) from $71 to $65 and lowered estimates ahead of Q3 results next Wednesday 10/12.

The firm sees Q3 EPS 2 cents below the Street and lowered FY12 EPS by $0.15 to $4.60. The firm lowered FY13 EPS from $5.20 to $4.92.

Goldman said while they remain most concerned about the company's beverage business, Frito's trends have shown softness recently too. The firm cited a notable step-up in promos across the snack category, said premium and low-priced brands are squeezing the mainstream brands and thinks competition from smaller companies could continue to intensify.

For more ratings news on Pepsico click here and for the rating history of Pepsico click here.

Shares of Pepsico closed at $60.29 yesterday.

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