Morgan Stanley's Top Stock Picks

As equity markets show signs of recovery following a volatile start to August, Morgan Stanley is taking a selective approach to stock picking. The broad market index and the Nasdaq Composite have both risen approximately 1.7% month-to-date, while the Dow Jones Industrial Average remains slightly positive. Equity strategist Michelle Weaver noted that despite the recent rebound, uncertainty looms as investors await the upcoming jobs report, which could indicate whether near-term growth risks have diminished. Among Morgan Stanley's favored stocks are tech giant Apple and online sports betting leader DraftKings, both of which have received an overweight rating from the firm. Morgan Stanley has set a price target of $273 per share for Apple, suggesting a potential upside of over 20% from its recent closing price. Apple shares have already surged more than 17% in 2024, with analysts projecting an additional 43% upside based on a target of $47 per share. In the sports betting sector, DraftKings is highlighted as a key player, with analysts forecasting the U.S. online sports betting market to reach $27 billion by 2026. DraftKings is expected to capture a significant 30% market share, reinforcing its position as a market leader. Additionally, Morgan Stanley has identified M&T Bank as a top pick in the financial sector, with shares up about 19% this year. Analyst Manan Gosalia emphasized the bank's strong capital and liquidity position, which enhances its resilience in a challenging macroeconomic and regulatory landscape. The stock closed at $162.91, representing a 35% discount to the firm's target price.