Morgan Stanley analyst Dara Mohsenian is suggesting a pair trade of being Overweight PepsiCo (PEP) and Underweight Keurig Dr Pepper (KDP) given that the stocks trade at similar valuations but he believes the former offers higher growth potential, higher visibility, and "much lower" risk than the latter. Mohsenian contends that the market is still not fully valuing the solid long-term revenue growth potential at PepsiCo while still overvaluing the growth potential of Keurig Dr Pepper, particularly in coffee, and also not factoring in the latter's potential deteriorating free cash flow post 2019, the analyst tells investors.