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NEW YORK (TheStreet) -- PepsiCo (PEP) - Get PepsiCo, Inc. Report stock coverage was started with an "outperform" rating and $121 price target at Credit Suisse on Friday morning.

"We think the market is not giving the company due credit for the marketing and financial strength of the Frito-Lay franchise and the rebalancing of the U.S. Beverages portfolio towards faster growing noncarbonated beverages," the firm wrote in an analyst note.

The company's Frito-Lay brand is a "best-in-class" snacks business that seems to be immune to competition, according to Credit Suisse.

"Mid-single digit sales growth, operating margins breaching 30%, and a staggering 54% U.S. market share merits a premium valuation to food peers and we think Frito-Lay can realize its full value even under the PepsiCo umbrella," the firm added.

Additionally, Credit Suisse said PepsiCo has gained leadership positions in some of the fastest growing categories by focusing less on colas and having a broader view of the non-alcoholic beverages category.

But international beverages are the company's weak spot, the firm noted.

Shares of PepsiCo were lower at the start of trading on Friday.

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(PepsiCo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations.

The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: PEP

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