BUZZ-Street View: PepsiCo needs more fizz to battle challenging snack market

PepsiCo PEP.O forecast annual profit below expectations and missed quarterly revenue estimates on Tuesday, as the company battles weak demand for its sodas and snacks such as Lay's in the U.S., its largest market

PEP shares up 0.7% at $144.5 premarket

FLAT FIZZ IN THE SODA AISLE

RBC ("sector perform", PT: $164) believes PEP should consider refranchising its bottling operations in North America

Morgan Stanley ("equal-weight," PT: $168) says co's overall sales growth is slow due to weak performance in North America's snack category and losses in the PEP's beverage market share

J.P.Morgan ("neutral," PT: $158) says the U.S. snacking market is becoming more challenging and PEP's absolute earnings performance have been negatively affected by the stronger dollar in recent years

Morningstar (fair value: $174) sees growth potential in zero-sugar recipes and protein drinks but expect co to also invest in promotions in value-focused channels to boost sales volume