Morgan Stanley Maintains Overweight on PepsiCo

Morgan Stanley is out with its report today on PepsiCo PEP, maintaining Overweight. In a note to clients, Morgan Stanley writes, "We continue to believe there is high EPS visibility that PEP can at least meet (or beat) its 2011 EPS guidance. PEP's valuation of 14.1x 2012 EPS, which is in-line with large-cap food companies, does not appropriately reflect its more favorable growth prospects, higher EM mix, solid ROIC, and a stronger competitive position than its food peers." Shares of PEP closed Monday at $69.30, down 0.90% from Friday's close.