BofA downgrades PepsiCo on sluggish growth and challenges in key markets

Brokerage BofA Global Research downgrades soda and snacks giant PepsiCo PEP.O to "neutral" from "buy", trims PT to $155 from $185

New PT still implies ~6% upside to the stock's last close

Brokerage expects Frito-Lay North America (FLNA) growth to remain below long-term trends, and international segments, while growing, are not enough to offset this slowdown

Brokerage sees limited opportunity for revenue or earnings per share (EPS) outperformance in 2025 and 2026

BofA says PEP faces challenges from price increases that would lead to volume declines in FLNA, market share losses in Pepsi Beverages North America (PBNA), and macroeconomic uncertainty in Mexico, a key market for the company

Despite this, brokerage sees upside to co's high margins in international markets and prudent management of P&L statements to protect earnings

Including session's moves, PEP stock down 4.3% YTD