Morgan Stanley Remains Overweight On PepsiCo

According to Morgan Stanley, PepsiCo PEP Overweight rating is maintained. Morgan Stanley said that it is removing PEP from Morgan Stanley's Best Ideas list given the stock now lacks a near-term catalyst with PEP's negatively revised 2011 guidance. “However, we still remain Overweight for key reasons. Weakness in Q2 was solely tied to PAB (Pepsi posted profit upside in every other division), where a significant negative pricing/cost gap drove downside, but should be alleviated going forward with planned price increases.” PepsiCo closed yesterday at $66.17.