UPDATE: Credit Suisse Initiates PepsiCo at Neutral on Fair Valuation

In a report published Wednesday, Credit Suisse analyst Michael Steib initiated coverage on PepsiCo PEP with a Neutral rating and $87.00 price target.

In the report, Credit Suisse noted, “PepsiCo shares have outperformed most global peers over the past 12 months as a result of both improving fundamentals and speculation regarding strategic change following the news of activist involvement. As a result, we think the stock is broadly fairly valued at this stage. Consensus expectations are realistic, in our view. We think the next significant catalyst is most likely an announcement regarding the company's strategy for its domestic beverage business in early 2014.”

PepsiCo closed on Tuesday at $82.57.