Goldman Sachs Cuts Price Target on Pepsico (PEP)

Goldman Sachs lowered its price target on Neutral-rated Pepsico (NYSE: PEP) from $74 to $71 on lower estimates on forex and a lower target P/E multiple of 14x versus 14.5x.

"Although the valuation gap between KO vs. PEP has widened to 22% (versus 10-year average of 4%), we do not expect the gap to narrow in the near term given the lingering challenges in its US beverage operation," the analyst commented.

The firm cut FY11 EPS form $4.43 to $4.40 and FY12 from$4.84 to $4.75.

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

Shares of Pepsico closed at $60.54 yesterday.

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