Barclays analyst Lauren Lieberman downgraded PepsiCo (PEP) to Equal Weight from Overweight with a price target of $156, down from $168. The firm believes the ability for PepsiCo shares to re-rate higher is all about the fate of the U.S. snacking business, and it sees a “heavy lift” for the company to shore up Frito-Lay North America. There are a few more quarters still to go before trends stabilize, particularly in light of what feels like a more precarious macro backdrop, the analyst tells investors in a research note. However, Barclays thinks FLNA is capable of returning to sustainable 1.5% volume growth longer term.
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