Jefferies Downgrades Pepsico (PEP) to Hold

Jefferies analyst Kaumil Gajrawala downgraded Pepsico (NASDAQ: PEP) from Buy to Hold with a price target of $170.00 (from $171.00).

The analyst commented: "PEP shares are up 7% off the Jan lows (in-line with XLP), offering limited upside to our target (~12%). Meanwhile, Frito continues to struggle, which will weigh on the multiple. Int'l remains strong, and the resegmentation feels logical, but with the US biz still struggling we lower 1Q. It may be several quarters before Frito inflects, and we don't understand the drivers. Better opportunities exist elsewhere in Bevs (KO, KDP, MNST)."

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 $152.33 yesterday.

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