Analysts at Morgan Stanley just lately unveiled a slew of must-own shares for 2024. These names have substantial upside and are nice buys now, in response to the agency. CNBC Professional combed via current analysis to search out Morgan Stanley’s finest concepts for the brand new 12 months. They embrace Spotify, T-Cell, Howmet Aerospace , BlackRock and UnitedHealth. T-Cell Morgan Stanley is betting on wi-fi development this 12 months. The agency stated it sees a slew of constructive catalysts forward for T-Cell with the mobile large poised to take market share. Analyst Simon Flannery likes the corporate’s sturdy capital return program and its “network and value offerings.” “The ongoing capital return program implies about $12bn in stock repurchases for 2024, with a new larger program likely late next year.” he added. T-Cell can also be nonetheless having fun with the fruits of its 2020 merger with Dash , in response to the agency. “Margins have been supported by ongoing productivity initiatives and, in the case of T-Mobile, merger synergies, with AI providing an additional opportunity going forward,” he wrote. That is all of the extra cause to purchase the inventory now, the analyst stated. “Our top pick is T-Mobile,” Flannery stated. Shares are up 13% over the previous 12 months. Howmet Aerospace Howmet is the agency’s prime decide in aerospace for 2024, in response to analyst Kristine Liwag. Morgan Stanley stated in a current notice that the corporate has a large attraction for traders. Particularly, Howmet has publicity to authentic gear manufacturing, along with the aftermarket. “We continue to see Howmet as best positioned for the commercial aerospace upcycle from the increases in new aircraft builds and spares,” she wrote. Liwag likes the corporate’s “underlevered” stability sheet and “room for multiple expansion.” This makes Howmet “well positioned for capital return in 2024 and beyond,” she added. Pricing energy additionally stays entrance and heart, she wrote, because the demand for plane components intensifies. In the meantime, the inventory is up practically 37% over the previous 12 months. “HWM offers a great blend of growth and quality with a strong management team,” Liwag stated. Spotify Morgan Stanley is sticking with Spotify as its prime decide this 12 months. Analyst Benjamin Swinburne stated that “more good news [is] ahead” for the streaming music firm. The agency stated tendencies seem strongest for music leisure firms like Spotify. One main cause, Swinburne stated, is pricing energy. “We have only seen the first round of price increases in streaming music and the first move towards optimizing royalty payments,” the analyst wrote. The value hikes are prone to ship a serious increase to revenues, he added. Shares of Spotify are up 137% over the past 12 months. “With a long global runway for streaming music adoption, we maintain SPOT as our Top Pick given a differentiated earnings outlook,” Swinburne stated. BlackRock “Adding selective risk with BLK to Top Pick given scope for fixed income rotation to support re-acceleration of inflows & attractive valuation. … We remain selective, preferring Top Pick BLK (and recently added it to our Financials’ Finest list) given its exposure to growth opportunities (fixed income, index, ESG, private markets, tech revs) and best mix of product, distribution breadth, and scale to capture rotation into fixed income.” T-Cell “Our Top Pick is T-Mobile; The ongoing capital return program implies about $12bn in stock repurchases for 2024, with a new larger program likely late next year. … Market leadership on network and value offerings. … Margins have been supported by ongoing productivity initiatives and, in the case of T-Mobile, merger synergies, with AI providing an additional opportunity going forward.” UnitedHealth “UnitedHealth is healthcare’s most scaled and diversified services company offering resiliency through the company’s integrated businesses. In health insurance, scale is king and UNH is the largest national insurer with top three position in almost all insurance end markets. … A strong balance sheet and continued solid cash generation give flexibility for continued M & A.” Howmet Aerospace “Our top Aerospace pick is OW-Howmet as it has both OE and aftermarket exposure, room for multiple expansion, an underlevered balance sheet poised for capital return, and strong pricing power. … TDG and HWM Remain Well Positioned for Capital Return in 2024 & Beyond. … We continue to see Howmet as best positioned for the commercial aerospace upcycle from the increases in new aircraft builds & spares. … HWM offers a great blend of growth and quality with a strong mgmt team.” Spotify “We have only seen the first round of price increases in streaming music & the first move towards optimizing royalty payments — we see more good news ahead. With a long global runway for streaming music adoption, we maintain SPOT as our Top Pick given a differentiated earnings outlook. … While SPOT shares have performed well, the market continues to value a greater share of streaming music value to the labels when adjusted for market share of the supply (label) & demand side of the market.”
