Morgan Stanley's 18 Stocks With Big Pricing Power Opportunities in Low Inflation

Which companies have the best opportunities to raise prices on their products or services without lessening consumer demand for them? According to a Morgan Stanley report out this week, these 18 companies have the strongest pricing power.

"While assessing a company's pricing power has long been a cornerstone of bottom-up investment research, it is arguably even more critical in the current environment," the Feb. 23 report read.

U.S. consumer price inflation may be inching higher, with the Consumer Price Index rising 0.3% in January, excluding food and energy, according to the Labor Department. Hence, January's uptick in inflation is not likely to be sustained, it read.

"Our list includes healthcare companies that focus on innovation, ones that have recurring revenue models with a value proposition that emphasizes location, ones that possess strong brands in growing categories, and some that offer consumables with low demand elasticity," the report said.

Below are the 18 stocks with the strongest pricing power, according to Morgan Stanley.

American Tower (AMT); Amgen (AMGN); Biotech (BIIB); Bristol-Myers Squibb (BMY); Celgene (CELG); Comcast (CMCSA); Constellation Brands (STZ); Equinix (EQIX); Extra Space Storage (EXR); L Brands (LB); Mettler-Toledo International (MTD); Mindbody  (MB); Philip Morris International (PM); Reynolds American (RAI); Sally Beauty (SBH); SBA Communications (SBAC); Sherwin-Williams (SHW); Starbucks (SBUX) .

(source: TheSTREET)