Activist Elliott Acquires $4B Stake in PepsiCo Plans Changes

Activist investor Elliott Investment Management has acquired a $4 billion stake in PepsiCo, becoming one of the company's largest active investors and pushing for strategic changes to boost the stock price. Elliott criticized PepsiCo's recent performance, citing strategic and operational challenges that led to poor financial results, and proposed initiatives aimed at re-accelerating growth, improving operations, and enhancing accountability. The announcement caused PepsiCo shares to surge approximately 5% in premarket trading, reflecting investor optimism about potential changes. Despite facing challenges such as fluctuating demand in its snack business and shifting consumer preferences toward healthier beverages, PepsiCo's stock remains positioned for potential upside, with analysts estimating a price target averaging $155.05 and GuruFocus projecting a fair value as high as $179.37. Elliott has a history of successful activist campaigns at major companies, signaling a serious intent to drive transformation at PepsiCo. Both PepsiCo and Elliott have yet to comment publicly on the development.