Deutsche Bank Lowers PT on PepsiCo to $70 (PEP)

Deutsche Bank is out with its report today on PepsiCo PEP, lowering its price target from $72 to $70. In a note to clients, Deutsche Bank writes, "We keep our 2011 EPS at $4.50, and lower 2012 from $4.96 to $4.93 (9% growth). We have stepped up revenue and repurchase estimate slightly, but this is offset by higher SG&A intensity, lower margin, higher interest expense. Management set the EPS 2011 growth target at just 7-8%, in line with our recently lowered numbers but well below consensus, reflecting commodity pressure and other investment initiatives. We are also lowering our DCF from $72 to $70 (equates to 15.5x 2011), on the lower LT growth rates." Deutsche Bank maintains Buy on PEP. At the time of posting, shares of PEP were trading at $62.72, down 1.01% from Thursday's close.