(Updates with the analyst's commentary.)
BofA Securities cut PepsiCo's (PEP) price target to $190 from $210 while maintaining its buy rating after a "disappointing" H1.
"The food and beverages industry continues to experience soft demand through mid-year," analyst Bryan Spillane wrote in a Monday note.
Data suggests PepsiCo Snacks and Beverages business volumes are "below plan," the analyst said, adding if the trend continues, the company may have to choose between "stretching to hit earnings targets" and cutting costs "too far."
While cutting back is a "low probability" for Q2, the chance "rises later in the year," Spillane said, noting historical precedent suggests "management would likely step back to move forward."
PepsiCo has an average rating of outperform and price targets ranging from $151 to $210, according to analysts by Capital IQ.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 162.85, Change: -1.54, Percent Change: -0.94
