UBS Is Confident In Buy Rating On Pepsi, Despite News Of Trian's Liquidated Position

UBS's Stephen Powers restated his Buy position and $114.00 price objective on PepsiCo, Inc. PEP despite activist investor and fund manager of Trian Management, Nelson Peltz, liquidating his 18 million share position in the company.

Related Link: Peltz's Pepsi Exit Wasn't Surprising; Jefferies Reiterates Buy

Powers reaffirmed management's continuous effort to "drive productivity to reinvest in its core brands to spur long-term growth." The analyst stated he remains confident in Pepsi's low likelihood of separation and continues to see upside in Pepsi's FY16 guidance.

In response to Trian's exit however, the UBS analyst said he acknowledged that "Pepsi's results will be held under elevated scrutiny over the coming quarters."

At the time of writing, PepsiCo was trading flat at $104.12, minutes before Monday's regular trading session ended.