Barclays says enhanced energy partnership shows PepsiCo ‘fresh way of thinking’

Barclays notes that PepsiCo (PEP) and Celsius Holdings (CELH) announced a series of changes that, while generally straightforward at a high level, signals an intriguing next step for this partnership and the energy category at large. PepsiCo has sold the Rockstar brand in the U.S. and Canada to Celsius Holdings, is making an additional $585M investment in Celsius Holdings convertible preferred shares, and will take on Alani Nu distribution beginning later this year. The firm believes the news offers signs that PepsiCo seems to be showing a fresh way of thinking and is a reaffirmation of a portfolio approach to competing in energy. Barclays has an Equal Weight rating on PepsiCo with a price target of $144.