Deutsche Bank downgraded PepsiCo's rating from “buy” to “hold” and lowered the target price from $155 to $138. The agency noted that although PepsiCo's current valuation is at a historically low level, confidence in its North American business strategy and ability to continue to recover has declined. Deutsche Bank previously believed that the company could improve the North American Fitoli business through measures such as improving product cost performance, innovation, distribution expansion, brand adjustment, and reinvestment, but the results of related measures have been limited in the past two years. Frederick North America and Pepsi North America have yet to achieve continuous improvements in consumption, organic growth, market share, and operating leverage. Deutsche Bank said it is no longer as confident as before that Frederick North America can achieve a lasting recovery.

Deutsche Bank downgraded PepsiCo's rating from “buy” to “hold” and lowered the target price from $155 to $138. The agency noted that although PepsiCo's current valuation is at a historically low level, confidence in its North American business strategy and ability to continue to recover has declined. Deutsche Bank previously believed that the company could improve the North American Fitoli business through measures such as improving product cost performance, innovation, distribution expansion, brand adjustment, and reinvestment, but the results of related measures have been limited in the past two years. Frederick North America and Pepsi North America have yet to achieve continuous improvements in consumption, organic growth, market share, and operating leverage. Deutsche Bank said it is no longer as confident as before that Frederick North America can achieve a lasting recovery.