PepsiCo ‘compressed valuation’ likely to rebound, says Morgan Stanley

Morgan Stanley notes PepsiCo reported “slight” Q1 upside and says the firm sees the stock’s “compressed valuation as likely to rebound as the market looks ahead to reinflecting trends in the balance of the year.” The firm, which expects international strength to come into greater focus, comparisons to ease, and sequential pricing pressure to dissipate, “strongly reiterates” Overweight-rated Pepsi as a “Top Pick” and maintains a $190 price target on the shares.