Morgan Stanley Feels Confident in PepsiCo Following Q1 EPS Report

In a report published Monday, Morgan Stanley analyst Dara Mohsenian reiterated an Overweight rating and $93.00 price target on

. In the report, Morgan Stanley noted, “We expect PEP to post 8% FX neutral EPS growth in 2014, slightly above its 7% forecast. We expect 4% 2-Yr. avg. organic sales growth, in-line with recent trends, but view Pepsi's implied flat to up slightly margin expansion guidance as too conservative given significant cost-cutting (worth ~150 bps to margins), as well as moderate commodities.” PepsiCo closed on Thursday at $85.55.