PURCHASE, N.Y. (
announced a pair of high-level executive change-ups, and
lowered its price target on the international beverage and snack company.
Pepsi said late Wednesday that Eric J. Foss, CEO of Pepsi Beverages Co. (PBC), a major operating division of the company, will retire, effective Dec. 9.
Foss, 53, has held the post since February 2010, joining Pepsi through the merger of its North American bottling operations. Previously he had served as CEO of the publicly traded
Pepsi Bottling Group
Separately, Pepsi announced that it tapped Albert (Al) P. Carey as CEO of PepsiCo Americas Beverages, effective immediately. Carey, 60, reports to Pepsi CEO Indra Nooyi. The 30-year company veteran most recently served as CEO of Frito-Lay North America.
Early Thursday, analysts from Goldman Sachs lowered their price target on Pepsi by $3 to $71, but maintained a neutral rating on the stock.
The price target reduction was attributed to expected foreign exchange rates and a lower price-to-earnings multiple.
"Although the valuation gap between
vs. PepsiCo has widened to 22% (versus 10-year average of 4%), we do not expect the gap to narrow in the near-term given the lingering challenges in its U.S. beverage operation," Goldman noted.
Goldman also cut its fiscal 2011 earnings-per-share estimate by 3 cents to $4.40, and its fiscal 2012 EPS estimate on Pepsi by 9 cents to $4.75.
Shares of Pepsi fell 0.7% to $61.15 in morning trading Thursday.
Written by Miriam Marcus Reimer in New York.
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