Morgan Stanley has named several buy-rated global stocks it expects to beat the market. In a note to investors, it named stocks after asking analysts to pick from a list where they have “particularly high conviction that the market is not pricing the beat” in terms of the current earnings announcements. The bank picked three pharmaceuticals stocks it is buy-rated (or “overweight”) on, including Novo Nordisk , maker of weight-loss drug Ozempic. “We expect Ozempic to drive a further upgrade to guidance before the 2Q results,” the analysts wrote — the company reports on Aug. 10. Other drugmakers the bank is positive on are Grifols , where the bank expects a “solid performance,” and Indivior , which is set for a “strong quarter,” Morgan Stanley said. Deutsche Telekom makes the buy list for its improved outlook due to “better trends in the US [and] Germany,” and entertainment company Scout24 , which the bank likes for its “steady” subscription revenues. French materials manufacturer Saint-Gobain is also a Morgan Stanley pick, with the bank saying that consensus has not yet priced in its management’s optimism on margins discussed at its annual general meeting last month. Energy company RWE is an overweight choice for the analysts, who expect to see earnings-per-share upgrades ahead. “Reporting seasons in the post-covid era have become an exercise in positive surprises,” the analysts led by Giorgio Magagnotti wrote in the note dated July 14. “While another positive beat ratio looks likely for 2Q23, a slowdown in global and European economic momentum suggests that the magnitude of the said beat will be closer to normal levels,” they added.
