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PepsiCo downgraded to Neutral from Buy at Citi

Citi analyst Filippo Falorni downgraded PepsiCo to Neutral from Buy with a price target of $145, down from $170, citing continued weakness in North America despite strategic actions that have included price reductions, innovation, and shelf space gains. While Q2 near-term trends were pressured by inflation impacts on consumer behaviors, which could improve sequentially, the firm worries about lingering underlying North America weakness in the second half and 2027, the analyst tells investors.

PEP

Citi analyst Filippo Falorni downgraded PepsiCo to Neutral from Buy with a price target of $145, down from $170, citing continued weakness in North America despite strategic actions that have included price reductions, innovation, and shelf space gains.

While Q2 near-term trends were pressured by inflation impacts on consumer behaviors, which could improve sequentially, the firm worries about lingering underlying North America weakness in the second half and 2027, the analyst tells investors.