UPDATE: Jefferies Calls PepsiCo 'The Gem Of The Portfolio' Amid Coverage Initiation

In a report published Monday, Jefferies analyst Kevin Grundy initiated coverage on PepsiCo PEP with a Buy rating and $102.00 price target. “The Gem of the portfolio,” Jefferies is optimistic on Pepsi's brand, strong margins, favorable tailwinds and market share. Grundy remarked, “Nascent signs of improvement in PEP's NA beverage business (NAB) are encouraging and should improve sentiment for what has long been an underperforming asset. Activist involvement – if nothing else – should elevate management's 'game' and drive better execution. FY14 guidance has plenty of room for upside, leaving us positive on both the near-term and long-term set-up for the stock.” Shares of PepsiCo closed at $88.00 on Monday.