NEW YORK (TheStreet) -- Shares of PepsiCo, Inc. (PEP) are up 2.32% to $91.24 in pre-market trade after it was reported that one of the U.S.'s largest pension funds has asked the food and beverage company to give activist investor Nelson Peltz a seat on the board, after becoming disillusioned with the soft drinks maker's performance, the Financial Times reports.
The demand from Calstrs, the California teachers' retirement system, which owns a $250 million stake, was made in a letter to Pepsi's senior independent director, Ian Cook, last month and is echoed by at least one of the company's top 10 shareholders, the Financial Times said.
TheStreet Ratings team rates PEPSICO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEPSICO INC (PEP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: