In a report released today, Lauren Lieberman from Barclays downgraded PepsiCo (PEP – Research Report) to a Hold, with a price target of $156.00.
Lauren Lieberman has given her Hold rating due to a combination of factors related to PepsiCo’s current market position and future prospects. The primary concern is the performance of the US snacking division, which is crucial for the company’s stock re-rating. The market perceives PepsiCo largely as a US food company, and the recovery of Frito-Lay North America’s (FLNA) volume is pivotal.
Although there is confidence in FLNA’s ability to achieve sustainable growth in the long term, the near-term outlook remains uncertain due to macroeconomic conditions. Lieberman believes that PepsiCo’s sales and profit growth targets are achievable, but the current valuation already reflects a cautious stance towards FLNA’s short-term performance. The company’s international momentum and productivity improvements provide some assurance against significant downside risks, supporting the Hold rating.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $170.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PEP in relation to earlier this year.