Morgan Stanley Analysts Recommend Buying Stocks of Undervalued Companies
As March kicks off, analysts at Morgan Stanley have identified a slate of stocks that investors should consider buying to capitalize on the market’s momentum. The firm is bullish on several undervalued companies and CNBC Pro has highlighted their top picks.
One of the recommended stocks is Sun Country Airlines, a discount airline that has been performing well according to analyst Ravi Shanker. He recently upgraded the stock to overweight from equal weight, citing positive catalysts on the horizon. Shanker praised the company’s unique business model and its ability to serve as a low-cost carrier for passengers, a charter airline, and a cargo partner for Amazon. Despite a 26% decline in the stock over the last year, Shanker believes investors should buy the dip.
Another stock on Morgan Stanley’s radar is HashiCorp, a cloud-computing infrastructure company that analyst Sanjit Singh upgraded to overweight. Singh highlighted a “cloud resurgence” that is expected to benefit HashiCorp as cloud demand picks up steam. With shares up nearly 10% in 2024, Singh believes the stock is still worth buying.
Rivian Automotive, an electric-vehicle maker, is also recommended by analyst Adam Jonas despite a more than 50% decline in the stock this year. Jonas believes that Rivian is entering a “crisis” mode that could lead to real change in the company. He listed areas that Rivian should address, including costs, capital discipline, and collaboration. Despite lowering his price target, Jonas still thinks investors should buy the stock.
Dell Technologies is another company that Morgan Stanley is bullish on, with the firm’s prior bull case becoming the new base case. The company’s AI server orders, backlog, and pipeline are tracking ahead of expectations, leading to optimism about its future performance.
Lastly, Huntington Bancshares is recommended by Morgan Stanley as a top pick for investors looking to minimize exposure to commercial real estate (CRE) risks. The company has higher levels of capital and liquidity, as well as strong deposit franchises, which can help mitigate potential losses related to CRE.
Overall, Morgan Stanley’s analysts are optimistic about the prospects of these undervalued companies and believe that investors should consider adding them to their portfolios.
