PepsiCo shares rebound on Friday, company acquires Bare Foods to expand healthy snack portfolio

May 28, 2018 9:43 am

PepsiCo Inc said on Friday it had agreed to acquire US maker of baked fruit and vegetable snacks, Bare Foods Co, in an attempt to expand its snacking portfolio and offer more positive nutrition options to its clients.

PepsiCo shares closed higher for the sixth time in the past eight trading sessions on Friday. The stock edged up 0.13% ($0.13) to $100.31, after touching an intraday high at $101.11, or a price level not seen since April 30th ($102.39).

In the week ended on May 27th the shares of the food and beverage company added 2.87% to their market value compared to a week ago, which marked a second consecutive period of gains. It has also been the best performance since the week ended on March 11th.

The stock has pared its loss to 0.62% so far during the current month, following a 7.52% slump in April. The latter has been a third straight month of losses.

For the entire past year, the shares of the NASDAQ-listed beverage company rose 14.61%, following another 4.71% gain in 2016.

After the deal is finalized, Bare Snacks is to continue operating independently from its San Francisco headquarters, while its leadership team will report to PepsiCo unit Frito-Lay North America.

“For nearly a dozen years, PepsiCo has been committed to Performance with Purpose, our vision of making more nutritious products, while also reducing added sugars, salt, and saturated fat. Bare Snacks fits perfectly within that vision”, Indra Nooyi, PepsiCo’s Chairman and Chief Executive Officer, was quoted as saying in a company press release.

“The Bare Snacks leadership team has done an outstanding job building a top-tier organization and a strong brand with authentic roots, and I couldn’t be more excited to welcome Bare Snacks to the PepsiCo family”, Nooyi added.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding PepsiCo Inc’s stock price, have a median target of $115.00, with a high estimate of $130.00 and a low estimate of $96.00. The median estimate is a 14.64% surge compared to the closing price of $100.31 on May 25th.

The same media also reported that 12 out of 27 surveyed investment analysts had rated PepsiCo Inc’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, Tuesday’s levels of importance for the PepsiCo stock are presented as follows:

R1 – $100.42
R2 – $100.53
R3 (Range Resistance – Sell) – $100.64
R4 (Long Breakout) – $100.98
R5 (Breakout Target 1) – $101.36
R6 (Breakout Target 2) – $101.52

S1 – $100.20
S2 – $100.09
S3 (Range Support – Buy) – $99.98
S4 (Short Breakout) – $99.64
S5 (Breakout Target 1) – $99.26
S6 (Breakout Target 2) – $99.10

By using the traditional method of calculation, the weekly levels of importance for PepsiCo Inc (PEP) are presented as follows:

Central Pivot Point – $99.83
R1 – $101.59
R2 – $102.88
R3 – $104.64
R4 – $106.41

S1 – $98.54
S2 – $96.78
S3 – $95.49
S4 – $94.21

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