PepsiCo downgraded to neutral at J.P.Morgan on ‘limited room for positive surprises’

PepsiCo Inc. shares
DYNAMISM,
+1.14%

was down 0.7% in premarket trading Tuesday after JPMorgan analyst Andrea Teixeira downgraded the soda and snack giant to neutral from buy and reduced his price target at $176 per share from $185 per share. “We see nothing fundamentally wrong with PEP and remain confident that the company is well positioned to achieve its 2024 outlook,” Teixeira said. “That said, we see the magnitude of upward estimate revisions narrowing and we see better opportunities in the beverage sector.” Teixeira said Pepsi was a “model of consistency” with “many positive changes” from Chief Executive Ramon Laguarta, but that the company appeared to have left “limited room for positive surprises” in earnings. JPMorgan sees better opportunities with overweight Coca-Cola Co.
EAST,
+0.72%

and Keurig Dr Pepper Inc.
PDK,
+1.35%,
Teixeira said.