Gabelli Comments on PepsiCo's Value "Maximization"

Gabelli & Company has published a research report on PepsiCo (NYSE: PEP) and comments on the belief that the company's value has maximized.

In the report, Gabelli writes, "Despite PEP's management insistence that “PepsiCo's value is maximized as one company,” speculation regarding a potential split-up into separate snack and beverage businesses has intensified as the company delayed its 2012 business update from early December 2011 to early 2012. PepsiCo's snacks business should grow around 6% per annum through 2015, benefiting from continued growth in emerging markets with lower per capita consumption rates. The beverage business should grow at around a similar 6% per annum rate through 2015, benefiting from the same low per-capita dynamics in emerging markets, as well as improving trends in the U.S."

PepsiCo closed Wednesday at $62.40.