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Stifel Comments On PepsiCo's Board Addition

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PepsiCo, Inc. (NYSE: PEP) on Friday announced that it has added William R. Johnson, retired chairman, president and chief executive officer of H.J. Heinz Company, to its Board of Directors.

Johnson is one of the three founding members of Trian Advisory Partners who maintains a close influence within PepsiCo and is “positive to long term fundamentals,” according to Mark Swartzberg of Stifel.

Shares of PepsiCo are Buy rated with a price target raised to $108 from a previous $107.

Swartzberg notes that in April 2006, Trian established a 5.4 percent stake in Heinz and challenged Johnson to pursue a series of cost cuts and asset sales. By June, Heinz announced a $355 million spending cut plan, a dividend increase and a two-year $1 billion share buyback.

Following Trian's stake in Heinz, shares posted an approximate 9.9 percent compounded annual growth rate through January 2013, outpacing the S&P 500's 4 percent, before Heinz was acquired by Berkshire Hathaway and 3G Capital for a 20 premium at $72.50 a share.

Latest Ratings for PEP

DateFirmActionFromTo
Oct 2017Credit SuisseMaintainsNeutral
Oct 2017JefferiesDowngradesBuyHold
Sep 2017MacquarieInitiates Coverage OnOutperform

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Posted-In: Heinz Company Mark Swartzberg Pepsi Stifel Trian AdvisoryAnalyst Color Price Target Analyst Ratings

 

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