PepsiAmericas has had its coverage raised.

Deutsche Bank said yesterday (5 March) that it was upping its position on the company to 'buy' from 'hold'.

"PepsiAmericas' differentiated growth story has been forgotten amidst ongoing input cost concerns and domestic CSD weakness," the bank said. "We expect another year of 10%+ earnings per share growth will help investors to remember."

Deutsche Bank maintained a price target of US$32, saying that management at PepsiAmericas should put balance sheet flexibility to work through further cash-generative, return-accretive deals in Central and Eastern Europe.

"PepsiAmericas is poised to exceed expectations via international growth, cost management, and tapping the balance sheet for new Europe opportunities, as currency again provides some tailwind," the bank concluded.

In January, PepsiAmericas posted rising net income for 2007, which came in at US$212.1m, up from $158.3m in 2006, with operating income up to $436.1m from $356m. The profit rises were driven by increased sales in the year, up by 13% to $4.48bn.