Morgan Stanley’s Buy-Rated Stocks Expected to Outperform the Market
Pharmaceutical Stocks
Among the buy-rated (or “overweight”) stocks, Morgan Stanley highlights three pharmaceutical companies. One of them is Novo Nordisk, the maker of the weight-loss drug Ozempic. The analysts expect Ozempic to drive an upgrade to guidance before the company’s second-quarter results are announced on August 10.
The bank also expresses a positive outlook on Grifols, anticipating a solid performance, and Indivior, which is expected to have a strong quarter.
Other Stocks on the Buy List
Deutsche Telekom is included in Morgan Stanley’s buy list due to its improved outlook, attributed to better trends in the US and Germany. Additionally, entertainment company Scout24 is favored by the bank for its steady subscription revenues.
French materials manufacturer Saint-Gobain is another pick by Morgan Stanley, as the bank believes that consensus has not yet factored in the management’s optimism on margins discussed at the company’s annual general meeting.
Lastly, energy company RWE is considered an overweight choice by the analysts, who anticipate earnings-per-share upgrades in the future.
Analysts’ Reflections
The analysts led by Giorgio Magagnotti highlight the positive surprises seen in recent reporting seasons post-COVID. They anticipate another positive beat ratio for the second quarter of 2023, but caution that a slowdown in global and European economic momentum may result in a beat magnitude closer to normal levels.
