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Morgan Stanley (MS) came out with its list of best ideas on the North American stock market. Apple (AAPL), which recorded profits due to iPhone sales in the fourth quarter is one of the 9 top stocks.
The Morgan Stanley analysts mostly focused on stocks that have a good risk/return ratio. At the top of the list is Amazon. Investments have been recently cut back and it is a great time to pick up the stock. The bank is aiming for a price target of 420 dollars.
Apple is also on the list as mentioned before. This stock has a price target of 126 dollars at Morgan Stanley. The share price does not take into account the upcoming hardware, software, and service innovations yet in the bank’s opinion. They expect that the iPhone will gain more market share as well because of the larger screens.
Canadian Pacific Railway (CP) is also one of the top stocks with a price target of C$278. There are plenty of examples of transportation and logistics providers that leave the competition in the dust with low costs and good service. Morgan Stanley believes that Canadian Pacific Railway is a great example of this.
Other Favorite Stocks
With a price target of 90 dollars, Delphi Automotive (DLPH)Â made the list. The analysts of Morgan Stanley expect the company to outgrow its industry by a factor of 2.
Macy’s (M) is also on top of the list with favorites and the bank is putting the price target at 70 dollars. The bank believes that the market undervalues the potential increase in value of Macy’s stock. The company also has one of the best cash flows in the business.
Michael Kors (KORS)Â is also on the list with a price target of 105 dollars. Analysts see multiple growth opportunities for the company, both geographically and otherwise. Prudential Financial (PRU) is also on the list (price target of 102 dollars) as the most attractive large cap life insurance broker.
Second to last on the list is Salesforce.com (CRM) with a price target of 80 dollars. Salesforce.com is one of the best software companies out there, in the bank’s opinion. Last in line is Steel Dynamics (STLD). With a price target of 28 dollars, Steel Dynamics is a defensive play with upside potential.
