Investment bank Lehman Brothers has increased its rating of PepsiCo from "buy" to "strong buy", with its analyst Michael Branca pointing to the company's "compelling valuation."
 
"In our view, the compelling valuation presents an excellent opportunity to aggressively step back into the shares of this premier consumer staple company," Branca said in a research note.

Branca said that PepsiCo's "more balanced growth algorithm, leading consumer brand portfolio and strong customized retailer programs" suggest the company will "substantially outperform its Consumer Staple brethren," he said in the note.