PepsiCo, Inc. (NYSE:PEP) is finally witnessing the fruits of all its hard work over the years, though the company is yet to overtake its bigger rival from the numero uno position, it sure is taking up all the right steps in that direction. Today, UBS announced that it has upgraded PepsiCo, Inc. (NYSE:PEP)’s stock to a buy, making it the only beverage company in the ‘Buy’ rating for a target of $100.
Stephen Powers from UBS explained the decision of upgrading PepsiCo, Inc. (NYSE:PEP)’s stock to a ‘Buy’, while Jim Cramer explained why he is bullish on the company instead of any other beverage company, on CNBC.
“PepsiCo, Inc. (NYSE:PEP) has turned the corner, its acting with a whole lot more sense of urgency on its own right. The Frito Lays North America business, which is its core business ha been very solid, international snacks has been good, international beverages have been actually on its own if not beating out coke and then there is the North American beverage business, which is where I see the momentum building, not on the top line, but on the bottom line through productivity efforts. You have got the backs of Trian and Nelson Peltz, who has been very vocal publicly about his commitment with Pepsi […],” Powers said.
Powers also mentioned that Nelson Peltz has had a lot of meetings with PepsiCo, Inc. (NYSE:PEP)’s investors, which has made the investors confident about what he is doing. Power believes that Peltz’s presence will put a pressure on PepsiCo, Inc. (NYSE:PEP)’s board to continue to do well in the future.
“Indra Nooyi, her stock is up 8.8, now up almost 9% this year, Coke is down 4.5%. I totally appreciate everything Nelson Peltz has done, I have said if you follow him you make money. I would go after Coke, they are the one who are overpaid, fat and happy, doing nothing […],” Cramer said.
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