Here are Morgan Stanley's top 8 consumer stock picks

Ticker: MCD

Price target: $214

Implied upside: 9.6%

Morgan Stanley's take:

"We believe MCD's Experience of the Future and technology investments are creating competitive moats in its business globally, supporting EPS and FCF growth in FY21 and beyond," Morgan Stanley's analysts wrote on Monday.

Source: Morgan Stanley

Ticker: PM

Price target: $92

Implied upside: 11.4%

Morgan Stanley's take:

"Philip Morris (PM) is our top pick in Tobacco as we think it should generate peer-leading, HSD EPS growth driven by modest global cigarette volume declines, strong pricing due to a rational competitive and accelerating IQOS market share momentum," the firm wrote.

Source: Morgan Stanley

Ticker: LOW

Price target: $130

Implied upside: 12.1%

Morgan Stanley's take:

"The housing backdrop is improving and likely to be a tailwind in 2020 vs. a headwind in 2019, LOW is delivering healthier results and its transformation seems to be working, LOW appears to have greater relative momentum than HD into 2020," Morgan Stanley said.

Source: Morgan Stanley

Ticker: MDLZ

Price target: $60

Implied upside: 13.6%

Morgan Stanley's take:

"We view MDLZ's recent topline acceleration as sustainable, aided by successful strategic changes implemented by management, increased reinvestment, as well as a favorable geographic/category performance," the analysts wrote.

Source: Morgan Stanley

Ticker: KO

Price target: $60

Implied upside: 13.7%

Morgan Stanley's take:

"We see clearly superior topline growth vs. large cap CPG peers, driven by stronger pricing power, strategy changes, ramping innovation, and momentum in emerging markets," Morgan Stanley said.

Source: Morgan Stanley

Ticker: PENN

Price target: $27

Implied upside: 15.63%

Morgan Stanley's take:

"PENN is our top pick in US gaming as it is arguably best positioned to benefit from the recent legalization of US sports betting given its 4 top class online partners and 19 state property footprint," the firm wrote.

Source: Morgan Stanley

Ticker: NKE

Price target: $118

Implied upside: 26.1%

Morgan Stanley's take:

"NKE is in the early innings of transition from a traditional wholesale business to a digitally-driven, direct-to-consumer ("DTC") brand. The business appears positioned to take share in the high-growth, global activewear market as well as increase profitability," the analysts said.

Source: Morgan Stanley