The gurus from Morgan Stanley are out with a report, pounding the table for stocks, suggesting we have an 11% upside from current levels. Moreover, thoughts emanating from within their skulls, they’re strongly biased towards the banks. Their top pick is DFS, for a sundry of reasons.
Their top picks:
If you enjoy the content at iBankCoin, please follow us on TwitterWe are overweight financials. In this report we analyze the case for the overweight and highlight our analysts’ top picks across the financial sector: DFS, IVZ, SIVB, KBC, and GS.
Portfolio Manager’s Summary: We think the risk-reward is pretty balanced for the US equity market, a more moderate stance than our bullish view for most of the last 3 years. The case for overweighting financials is a combination of weak positioning, improving deal volume, limited currency sensitivity, high growth in shareholder return, and a very low price.
