UPDATE: Goldman Sachs Downgrades PepsiCo to Neutral

Goldman Sachs is out with its report today on PepsiCo

, downgrading PEP from Buy to Neutral. In a note to clients, Goldman Sachs writes, "We are removing PEP from the America's Conviction Buy List and lowering the rating to Neutral. Since adding PEP to the Conviction Buy List on May 8, 2011, the shares are -5.1% vs. the S&P500 +0.4%. Over the past 12 months, PEP is +2.4% vs the S&P500 +23%. We lower our EPS estimates for 2011/2012/2013 to $4.43/$4.84/$5.29 reflecting a lower profit outlook in Pepsi Americas Beverages on weaker price realization. Consequently, we have reduced our rolling forward 12-month P/E-based PT to $74 from $83, by applying a lower multiple of 14.5X (from prior 16X), which reflects lower EPS growth prospects." At the time of posting, shares of PEP were trading pre-market at $65.05, down 1.08% from Friday's close.