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One area Morgan Stanley is betting big on is wireless growth.
And their top pick to capitalize on that growth is T-Mobile (NASDAQ: TMUS).
They see a slew of positive catalysts for the stock, like the company’s robust capital return program and its “network and value offerings.”
As analyst Simon Flannery says…
“The ongoing capital return program implies about $12bn in stock repurchases for 2024, with a new larger program likely late next year.”
He also says the company is still enjoying the fruits of its merger with Sprint in 2020.
“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.”
Meanwhile, the big bank sees aerospace as another area to bet on…
… with Howmet Aerospace (NYSE: HWM) as its top pick for 2024.
“We continue to see Howmet as best positioned for the commercial aerospace upcycle from the increases in new aircraft builds and spares” – they said.
The firm likes the company’s “underlevered” balance sheet and “room for multiple expansion,” which makes it “well positioned for capital return in 2024 and beyond.”
Then you have Morgan Stanley’s top pick for 2024: Spotify (NYSE: SPOT).
Why?
As analyst Benjamin Swinburne said…
The company has good news ahead and trends appear strongest for music entertainment companies like Spotify.
A major reason for that is the company’s price hikes…
… which they think are likely to deliver a major boost to revenues.
Another top pick for 2024 is BlackRock (NYSE: BLK), given its exposure to growth opportunities and a mix of product, distribution breadth, and scale to capture rotation into fixed income.
And finally…
The bank’s top pick in healthcare is UnitedHealth (NYSE: UNH).
That’s because according to the firm it’s “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.”
Now, these could be great stock picks for 2024.
But nobody has a crystal ball and it’s difficult to predict what will happen in 2024.
Yours in Wealth,
Ian Wyatt