Morgan Stanley is taking heavy positions in several stocks as investors wait to see whether October will be a volatile or calm month for the market. The investment bank said these top companies are well-positioned in the long term. They include Lineage, Thermo Fisher Scientific, M&T Bank and TSMC. Lineage analyst Ronald Kamdem has stepped up his investment in the cold storage warehouse company following a series of constructive management meetings. Morgan Stanley said that despite recent data showing a decline in total cold storage inventories, Lineage still believes there is significant room for growth. “We view this as one of the most bullish comments of the session and suggest multiple upside paths to a solid mid-single-digit growth ‘bottom line’ through internal and external growth,” he wrote. Kamdem is particularly bullish on Lineage’s M&A opportunities. “With LINE’s approximately 33% market share in the United States and approximately 12% global market share, we believe LINE is the preferred acquirer, with annual acquisition potential of US$500 million to US$1 billion in addition to the next 3-5 years. Development opportunities,” he wrote. Morgan Stanley, the lead underwriter of the $78-a-share IPO in July, said Lineage shares have fallen more than 7% in the past month, but at current levels they are too attractive to ignore. “Reiterate (overweight) and top pick,” Kamdem said. The team led by analyst Tejas Savant said that the medical technology company Thermo Fisher Scientific is going all out. Morgan Stanley praised the stock during its recent Thermo analyst day. He wrote: “A typical TMO (analyst day), the consistency of information provides assurance of industry ownership in the 25th century.” In a world full of uncertainty, Savant praised Thermo’s continued, strong growth. Overseas economic growth, especially in China, is still sluggish, but Morgan Stanley is optimistic that China’s latest stimulus measures will improve the economic outlook. Meanwhile, Thermo shares have plenty of room to rise, Savant writes. The stock is set to rise nearly 13% in 2024. M&T Bank analyst Manan Gosalia said the Buffalo-based regional bank faces some positive catalysts. Following a series of recent management meetings, analysts said M&T was a top idea. He wrote: “MTB is approaching the sweet spot of improving credit metrics, stabilizing loan growth, lowering funding costs and accelerating capital returns.” In addition, Morgan Stanley believes that as the Fed continues its interest rate cutting cycle, margins will “Significant improvement.” The bank noted that this will also help M&T’s commercial real estate (CRE) loans. “Lower interest rates will depress criticized commercial real estate and address key concerns among investors, in addition to helping lower capital requirements and improving credit ratings,” Gosalia said. The stock is up 30% this year. , but he believes the stock is still far from perfectly priced. “MTB is approaching the sweet spot of earnings growth and multiple re-ratings,” Gosalia and his team said. Thermo Fisher “Classic TMO (analyst day), consistent messaging, guaranteed for 25 years of property ownership .…Scale, unique value proposition, M&A optionality, and best-in-class resiliency/execution keep us among the OW/Top picks…While China’s economic growth remains weak, recovery is possible with the help of years of stimulus to 10%. Lineage “reaffirmed OW and top pick. … We thought this was one of the most bullish comments from the conference and suggested multiple upside paths to a solid mid-single digit growth “bottom line” through internal and external growth. . … LINE’s market share in the United States is about 33%, and its global market share is about 12%. We believe that LINE is the preferred acquirer. In addition to future development opportunities, it is possible to conduct 500 million transactions annually in the next 3-5 years. to $1 billion in acquisitions.” TSMC “Our top pick; still in rapid growth phase: Although not official guidance, at a recent brokerage conference, management did mention that the company may be ‘targeted’ to maintain revenue CAGR of 15-20% over the next five years Growth rate. Attractiveness. M&T Bank “MTB is approaching the sweet spot of improving credit metrics, solid loan growth, lower funding costs and accelerated capital returns… Lower interest rates will weigh on CRE, in addition to helping lower capital requirements and In addition to improving returns on capital, it also removes investors’ major concern about credit ratings… With the Fed cutting interest rates, (net interest margins) will expand significantly… MTB is approaching the sweet spot of earnings growth and multiple re-ratings.
Morgan Stanley says to continue buying October picks | Real Time Headlines
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