PepsiCo's (PEP) North America segment remains a work in progress, even as the company continued to enjoy resilient momentum in its International business, Deutsche Bank said in a Friday note.

Initiatives like affordability investments, evolved advertising, brand restaging, among others, have made little improvement in unit volume for PepsiCo Foods North America, while PepsiCo Beverages North America remains a "laggard competitively with weak margins," the bank said.

While the company's management has discussed a number of prospective and ongoing actions that aim to improve near-term performance, it offered less clarity on how such actions will collectively lead to a "credibly improved growth and earnings algorithm by fiscal 2028," Deutsche Bank added.

The bank has a hold rating and $132 price target on the company.

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