Market Overview

Stifel Comments On PepsiCo's Board Addition

Share:
Related PEP
Earnings Preview: McDonald's, Coca-Cola, And Chipotle Report Q1
Domestic Fair Trade Label Set To Enrich Local Economies, Expand Retailer Options
Baystate Wealth Management LLC Buys SPDR S&P International SmallCap, Exxon Mobil, Schwab US ... (GuruFocus)

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
Apr 2017SusquehannaUpgradesNeutralPositive
Jan 2017BarclaysInitiates Coverage OnEqual-Weight
Oct 2016CitigroupMaintainsNeutral

View More Analyst Ratings for PEP
View the Latest Analyst Ratings

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

 

Related Articles (PEP)

View Comments and Join the Discussion!