UPDATE: Citigroup Cuts Target on PepsiCo to $68

Citigroup reiterates its Neutral rating on PepsiCo (NYSE: PEP) and lowers its price target to $68 from $70 on lower estimates following analyst meetings.

Citigroup says, "Based not only on 4Q11 EPS that came in 2 cents below our estimate, but also to reflect management's guidance for 2012, we lower our 2012 EPS estimate to $4.05 (-8% YoY) and our 2013 EPS estimate to $4.37 (+8% YoY). We note that our new estimate for 2012 reflects notable pressure on EPS to come from both more marketing spending (as expected) and significant commodity pressure (not as expected, but owing to poor hedging, in hindsight)."

PEP closed at $64.27 a share yesterday.