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Pepsi wins the Morgan Stanley taste test

|About: PepsiCo, Inc. (PEP)|By:, SA News Editor

Morgan Stanley sticks with an Overweight rating on PepsiCo (PEP -0.2%) and Underweight position on Keurig Dr Pepper (KDP -1%).

Analyt Dara Mohsenian observes that the two beverage stocks trade at very similar valuations when it comes to key metrics, despite the "clearly superior" long-term sales growth projected for Pepsi top-line growth and higher visibility on profit delivery.

He sees PepsiCo returning to high single-digit EPS growth, while KDP struggles to keep pace.

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