UPDATE: Morgan Stanley Initiates Dr. Pepper Snapple Group at Equal-Weight

Morgan Stanley is out with its report today on Dr. Pepper Snapple Group (NYSE: DPS), initiating DPS at Equal-weight.

In its report, Morgan Stanley writes, "We initiate coverage of DPS at EW. Valuation looks undemanding at 8.2x 2012e EV/EBITDA, but appropriately discounts leverage to slower growth developed markets and mature beverage categories. Our top-line growth forecast is at the low end of DPS's 3-5% long-term target. DPS trades at 8.2x 2012e EV/EBITDA, a premium to global bottlers but well below its branded beverage peers, appropriately reflecting the company's muted growth prospects and lower ROIC."

Shares of DPS closed Tuesday at $36.42.