Citi Increases PT on PepsiCo to $73, Maintains Buy

Citi increased its price target on PepsiCo PEP from $69 to $73. This increase was not enough to persuade Citi to upgrade its rating from Hold, however. In a research report published today, Citi states, "Given our greater confidence in the year outlook, we are raising our target valuation on PEP to a 15% premium to the market multiple (from 10%), which brings our target price to $73 based on 15x our 2012 estimate of $4.85. With the stock up 9% YTD, and with the stock now trading nearly at our target 15x multiple, we believe the stock is fully valued at current levels, and thus we maintain our Hold rating." On Monday, PepsiCo lost 0.36% of its value to close the day at $71.04. Its shares continued to slide in today's pre-market trading, falling 0.34% to $70.80.