Wells Fargo Reiterates Perform on PepsiCo

Wells Fargo maintains its Perform rating on PepsiCo, Inc. (NYSE: PEP) as it sees a reset as another reason to stay on the sidelines.

Wells Fargo says, “It makes strategic sense for PEP to take advantage of an opportunity to invest in its brands when market expectations have temporarily eased. Still, given the ongoing turnaround in the beverage business and uncertainty around the company's strategy, we think the risk/reward is at best neutral at current levels. We do not think that management is seriously considering a break-up in the near term, nor do we foresee additional management changes; otherwise we are not sure what management could say to move the shares higher.”

PEP closed at $64.09 per share on Thursday.