Regardless of the market volatility, Morgan Stanley upgraded a raft of shares in March, together with each U.S. and international picks. The bullish calls spanned tech, prescription drugs and extra, with the financial institution giving one inventory a double improve. Listed here are 5 of the shares upgraded by the funding financial institution: Pinduoduo Morgan Stanley upgraded Chinese language e-commerce large Pinduoduo to an obese ranking in a Mar. 2 be aware, elevating its value goal to $113 — giving the inventory 52% upside to its present stage. It stated the corporate, which can also be listed within the U.S., advantages from the long-term consumption development, and is a “structural” development inventory in Chinese language e-commerce. The latest share value correction presents a superb entry level into Pinduoduo, the Morgan Stanley analysts stated. Whereas there have been a number of causes for the drop, reminiscent of a weaker-than-expected consumption restoration and rising geopolitical tensions, the financial institution believes the market may need overestimated the affect on the agency. Moreover, Morgan Stanley stated Pinduoduo’s consumer base has enlarged “considerably,” and consumer stickiness has strengthened. “PDD remains to be the go-to e-commerce platform for many shoppers who’ve cultivated their price-conscious buying conduct over the previous three years throughout Covid, and it’ll proceed to assist its long-term development,” the financial institution’s analysts wrote. ACM Analysis Morgan Stanley gave California-based ACM Analysis, which supplies cleansing providers for semiconductor gear, a double improve from an underweight ranking to obese. It additionally gave the inventory a value goal of $13.50, or 20% potential upside, in its be aware from Mar. 6. The financial institution stated ACM ought to get pleasure from a robust 12 months of development in 2023, supported by “robust” market share beneficial properties and new product launches. It additionally expects enterprise in Europe in energy semiconductors to broaden. Morgan Stanley added that the corporate’s value energy was “holding up fairly effectively” and raised its 2023-2024 earnings-per-share estimates. Meta Morgan Stanley upgraded the inventory from equal weight to obese , and raised its value goal to $250 – implying upside of 21%. “We’re constructive on META’s structural pivot towards elevated effectivity and (importantly) enhancing income, engagement and Reels tendencies,” the financial institution’s analysts wrote in a March 21 be aware. They added that Meta is healthier positioned than Google, which hasn’t decreased prices as aggressively, and Amazon, the place rising retail profitability relies on rising client spend. Harley-Davidson The financial institution upgraded Harley-Davidson to obese , giving it a value goal of fifty%, or almost 40% upside. A pullback within the agency’s shares to beneath $40 has made it “too cheap” given its 3% topline development and 12% free money movement yield, in accordance with Morgan Stanley in a Mar. 21 be aware. Sarepta Therapeutics Morgan Stanley upgraded Sarepta Therapeutics to obese with a value goal of $187, giving the inventory potential upside of 43%. Morgan Stanley thinks that certainly one of Sarepta Therapeutics ‘ medicine will obtain accelerated approval from the Meals and Drug Administration — making a promising investing alternative — in accordance with a Mar. 1 be aware. — CNBC’s Michael Bloom contributed to this report.
Morgan Stanley has upgraded a raft of stocks to overweight — here are 5