Pepsico shares slip as Morgan Stanley cuts its rating
** Shares of PepsiCo Inc PEP.O were down 1.9% at $171.27 during morning trading Fri after Morgan Stanley cut its rating on the stock to "equal weight" from "overweight"
** The stock hit its lowest level since Aug. 30 and was on track for its fifth straight day of losses while S&P 500 consumer staples index .SPLRCS, down 0.09% on the day and angling for its fourth straight day of declines
** In their note, Morgan Stanley analysts cited PEP market share losses
** "Pepsi's market share is deteriorating in US scanner data, and if recent reinvestment (which has been funded so far with cost savings) does not drive greater payback, the need to fund additional reinvestment in 2025 will likely drive a below LT algorithm EPS," they wrote, adding that they cut their EPS estimate for PEP for fiscal year 2025.
** "Still, we are (equal weight) with relatively low valuation," they noted.
** Of 24 analysts covering the company, 13 rate the stock a "hold" and the 12-month median PT is $185, per LSEG
** Including the session move, the stock is up about 0.8% YTD vs a roughly 19% gain in the S&P 500 .SPX
Reporting by Caroline Valetkevitch
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