Five Stocks Have Been Upgraded To Overweight By Morgan Stanley

A number of Morgan Stanley picks, both U.S. and global, were upgraded in March despite the volatility in the market.

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In addition to giving one stock a double upgrade, the investment bank also gave bullish calls on many other stocks. Here are five stocks that the bank upgraded:

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Pinduoduo

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Pinduoduo, one of the largest Chinese e-commerce giants, was upgraded to an overweight rating by Morgan Stanley in a note dated Mar. 2. Morgan Stanley raised its price target to $113 - giving the stock a 52% increase from its current price.

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Among other things, the company, which is also listed in the U.S., is benefiting from long-term consumer spending trends, and it was considered a "structural" model for Chinese e-commerce growth.

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In Morgan Stanley's opinion, the recent share price correction offers a good opportunity to enter the Pinduoduo stock market. The bank believes the market overestimated the firm's impact despite the fact that there were a number of reasons for the drop, including a weaker-than-expected recovery in consumer demand and an increase in geopolitical tensions.

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Additionally, Morgan Stanley stated that Pinduoduo's user base had expanded "significantly" since 2012, as well as the stickiness of its users, had increased.

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In the report, the bank's analysts stated that PDD is still the typical e-commerce platform that most consumers use when making purchases online as they've cultivated their price-conscious shopping behavior over the last three years during Covid. They concluded that this will continue to be a long-term growth factor for PDD.

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ACM Research

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An underweight rating on California-based ACM Research has been upgraded to overweight, along with a $13.50 price target, representing a 20% potential upside.

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Moreover, the bank expects growth in Europe in power semiconductors in 2023 in tandem with "strong" market share gains.

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According to Morgan Stanley, the company is holding up quite well in terms of its price power, and its earnings-per-share estimates have been raised for 2023 and 2024.

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Meta

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A stock that was previously equal weight has been upgraded to overweight by Morgan Stanley, and its price target has been raised from $250 to $250 - implying a 21% increase in value.

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The analysts at Bank of America Merrill Lynch outlined their positive opinion of META's structural pivot towards improved efficiency and (more importantly) improved revenue, engagement, and Reels trends in a report published on March 21.

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Meta is in a better position than Google for example, which hasn't reduced costs as aggressively, and Amazon too, which is dependent on consumer spending to increase retail profitability, which hasn't reduced costs as aggressively.

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Harley-Davidson

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A research report from Bank of America upgraded Harley-Davidson to overweight, giving it a target price of 50%, or nearly 40% above the current price.

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In a Mar. 21 note, Morgan Stanley says the firm's shares have dropped below $40, making it "too cheap" at the current price based on the fact that the company's top line has grown by 3% and its free cash flow yield is 12.

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Sarepta Therapeutics

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A price target of $187 and an overweight rating have been assigned to Sarepta Therapeutics by Morgan Stanley, giving it a 43% upside potential.

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According to a Mar. 1 note by Morgan Stanley, Sarepta Therapeutics' drug could receive accelerated FDA approval - providing a promising investment opportunity.