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PepsiCo (PEP) is in focus after Citi downgraded the stock to Neutral from Buy and cut its price target to $145 from $170, a move that came after a Q2 report in which both North American segments missed Street estimates.
The $5.92 annual dividend now yields over 4.2%, roughly three times the S&P 500 ($SPX) rate, with shares sitting near their 52-week lows.
The next test: whether management's promise of a gradual North America recovery actually shows in the second half. The Q2 print PepsiCo's domestic business disappointed on both lines.
PepsiCo Foods North America (PFNA) posted a 2% annual decline in organic sales. PepsiCo Beverages North America (PBNA) managed just 1% organic growth. Both came in below what the Street had modeled.
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