PepsiCo downgraded to Neutral at BofA on slower snacks growth

As previously reported, BofA analyst Bryan Spillane downgraded PepsiCo (PEP) to Neutral from Buy with a price target of $155, down from $185. Frito-Lay North America’s growth is likely to remain below long-term trendline this year and while international segments are scaling and making large contributions to sales and profit growth, it’s not enough at this point to make up for slower growth at the North American snacks segment, the analyst tells investors. Given this, the firm expects limited opportunity for either topline outperformance or for better than low single-digit EPS growth in 2025 and 2026, the analyst tells investors.