PepsiCo Downgraded to Hold as Deutsche Bank Cuts Target to $138

Deutsche Bank downgraded PepsiCo (PEP) to Hold from Buy and cut its price target to $138 from $155. The bank cited reduced confidence in the company’s ability to achieve a lasting recovery in its North American food and beverage businesses.

Analyst Steve Powers said many of PepsiCo’s initiatives over the past two years have delivered “mixed or fleeting benefits.” The firm pointed to continued struggles in PepsiCo Foods North America (PFNA) and PepsiCo Beverages North America (PBNA) to achieve sustained improvement in consumption, organic growth and market share.