MORGAN STANLEY: These Huge Stocks Show That The Market Is Already Expecting Disaster

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Morgan Stanley has identified the 11 hig h-rated promotions, which are currently being sold at a reasonable level to the MS, which is currently being sold and is currently trading at a reasonable level to MS.

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These are the values ​​of each promotion based on the official price guide of Morgan Stanley, and are trying to take into account the prices of promotion in a plunged scenario.

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In the memo to the buyer, they say:

Our experts have identified some, in some cases, in some cases, and in some cases, in some cases, to improve the basic functions, and have identified the promotions that have been sold or simply stagnant. All 11 promotions are evaluated as Overweight, and most of them have an unmistakable catalyst with the ability to increase the promotion within 6 months. Interestingly, this list contains eight different sections promotions.

These 11 promotional risk return profiles are very attractive. 11 The average increase in target stock prices for promotions is 35 %, the average decline in the bea r-scenario is 3 %, and it is also not possible for experts to lower their personal risk return tests in the near future. There is.

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#1: Cisco Systems (CSCO)

Industry: Communication / data communication equipment

Current value: $ 16, 33

Morgan Stanley's weakest case forecast target price: 17, $ 200

Morgan Stanley, the reason why the market makes mistakes, Most of Cisco's sales promotion is related to macroeconomic goals, and MS experts believe that these levels were already expected. "Investors are currently underestimating Cisco's franchise position in data centers," said MS.

Closest Catalysts Morgan Stanley sees "natural seasonality of holiday sales and telco cost recovery in Q2 2012" as potential growth catalysts for CSCO. MS also argues that customers are suspending customary charges in anticipation of the new Intel Romley server processors, and that "high ocean data center revenue should grow consistently" in the July quarter when those charges resume.

Description: Cisco Systems makes networking products such as routers, wireless access points and switches that connect computers around the world.

Source: Morgan Stanley

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#2: Freeport McMoRan (FCX)

Industry: Non-ferrous Metals & Mining

Current Share Price: $32, 04

Morgan Stanley Bearish Release Estimated Fair Value: $30, 00

According to Morgan Stanley, "FCX is pricing copper at $2. 80 per pound, which is 17% below the reserve price. Higher copper prices bode well for Freeport-McMoRan, and Morgan Stanley currently has a "bullish" view on copper. MS also forecasts FCX production growth of 35% in 2011-15 versus 22% for the industry, which it says "is not valued by the market."

Closest Catalyst: As mentioned above, Morgan Stanley sees rising copper prices as a catalyst for FCX growth. They note that copper is cheaper in Shanghai than in London due to "weak Chinese buying." Morgan Stanley expects this to change later this year, with "confidence in Chinese demand increasing."

Description: Freeport-McMoRan is one of the world's largest copper and gold producers.

Source: Morgan Stanley

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#3: International Game Technology (IGT)

Industry: Gambling, Hotels

Current Stock Price: $14. 30

Morgan Stanley's Fair Value Estimate on Bear Release: $14, 000

Why the Market is Wrong: Morgan Stanley believes that "a series of events (recent Doubledown acquisition and disappointing Q2 earnings) have shaken investor confidence," but that if IGT "divests 2. 0x and uses 50% of excess FCF for stock redemptions, Ransom shares could carry at the 25% level."

Closest Catalyst: Morgan Stanley expects "improving conditions from casino openings in the domestic market and growing share in international markets will lead to higher quarterly earnings in the coming quarters."

Description: International Gaming-Technology manufactures games commonly found in casinos, such as slot machines and video poker.

Source: Morgan Stanley

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#4: Kraft Foods (KFT)

Industry: Food

Current stock price: $38. 27

Morgan Stanley's fair value estimate in bear release: $35. 00

The reason why the market is wrong: Morgan Stanley argues that "the market does not fully evaluate KFT's strategic value creation and basic strength." Morgan Stanley pointed out the continuity of revenue, strong expectations, and "growth of cash income" as an element currently discounted in stock prices.

Immediate catalyst: Morgan Stanley believes that Craft will benefit from the latter half of the year's investor meeting this year and will provide investors a lon g-term guidance on growth and revenue. Morgan Stanley believes that craft will increase market share in the long term and benefit from increasing sales due to a decline in food prices.

Explanation: Craft is a global food manufacturer and offers a huge brand portfolio, including brands with the company's name, Oreo, Nabisco and Oscar Meire.

Source: Morgan Stanley

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#5: Las Vegas Sands (LVS)

Industry: Gambling, Hotels

Current stock price: $ 46, 18

Morgan Stanley's most bearish case fair value estimate: $ 45 00 cents

Reasons for the wrong market: Morgan Stanley, one of the core markets of LVS, has led to the slower of profits in Macau, which is more popular than VIP customers. I don't think it takes into account the unique business position. MS states, "Macau is constantly changing, and the mass market is growing rapidly over the VIP."

Immediate catalyst: Morgan Stanley expects LVS to surpass the expected revenue in June in June and continue to improve the business than other companies in the same market.

Explanation: Las Vegas Sands runs a luxury hotel and a casino in the United States and Macau.

Source: Morgan Stanley

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#6: Monsanto Company (MON)

Industry: Pesticide

Current stock price: $ 77, 20

Morgan Stanley Beauty Case Fortune Estimate: $ 70, 00

Reasons for the wrong market: Morgan Stanley has a decline in Monsanto because the US Ministry of Agriculture predicts the increase in corn, which may lead to a decline in corn prices. I see it there. However, Morgan Stanley does not believe that the supply will increase as expected. In addition, MS pointed out that Monsanto is not only tied to the United States, but does not seem to be aware of the market. In this regard, MS wrote: "The demand for biotechnology and corn in Brazil and Argentina is changing positively, and Monsanto is moving forward with corn seed production in Eastern Europe."

Top Catalysts Morgan Stanley mentions the most likely top catalysts covering actual data on the US corn harvest that will be available for the summer, as well as the fall sap season in South America.

Description: Monsanto - mass agriculture biotechnology company produces herbicides that protect farmers' crops from the elements.

Source: Morgan Stanley

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#7: Prudential Financial (PRU)

Industry: Insurance - Life Insurance/Ancillary Services

Current share price: $46. 45

Morgan Stanley's most bearish case fair value estimate: $ 45 00 cents

Why Bazaar makes mistakes Morgan Stanley believes that Prudential's recent benefit reduction, for example, led to overselling, as the benefit reduction was triggered by a major unique note. In MS's view, at this point, Bazaar "does not consider any future upside in return on personal capital."

Top Catalysts Morgan Stanley cites "prospects of improvement" in Prudential's second-quarter earnings and "confidence in ROE outlook."

Description: Prudential - A cash business that owns large divisions for insurance and investment management.

Source: Morgan Stanley

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#8: Rockwell Collins (COL)

Industry: Aerospace & Defense

Current Stock Price: $50. 37

Morgan Stanley Bear Estimated Target Price: $50, 00

Why Bazaar is Wrong: Morgan Stanley, in effect, states that "the consensus assessment of the benefits of promotion is near the lower end of the spectrum proposed by leadership," speaking to the fact that Bazaar is not actually supposed to have some control. MS also takes note of activist Heidi Wood's role in the company's affairs, stating that in fact "the company believes it can do more, but because promotions are inactive, activists have the ability to actively freeze."

Top Catalysts Morgan Stanley recommends watching Rockwell's upcoming benefits announcement in July.

Description: Rockwell Collins - A defense contractor that manufactures host systems used in aircraft and other aerospace and defense equipment.

Source: Morgan Stanley

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#9: Thermo Fisher Scientific (TMO)

Industry: Scientific Instruments & Diagnostics

Current stock price: $50, 48

Estimated target price for Morgan Stanley's more bearish release: $47, 00

Why Bazaar Gets It Wrong Morgan Stanley believes that macro factors and concerns around R& O funding upfront are lowering the price of TMO-promotions, but that these "have reason to believe that there will be no substantial changes in the budget for scientific research in 2013 to compare with current levels". MS also believes that the current cost of TMO-promotions "does not reflect TMO's ability to grow its promotional profits by at least 10% in 2013, either considering or exclusively in the United States".

Top Catalysts: Morgan Stanley identifies fewer catalysts than the other promotions mentioned, but the call will indeed go unchallenged with the Macrorian period, and promotional credibility should increase if TMO continues to talk about rising incomes.

Description: Thermo Fisher Scientific manufactures laboratory equipment and instruments for the medical industry.

Source: Morgan Stanley

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#10: United Technologies (UTX)

Industry: Aerospace & Defense

Current Price: $74, 11

Expected Price Target on Morgan Stanley's "Bearish" Release: $75, 00

Why Bazaar Makes a Mistake: Like almost every other promotion mentioned here, Morgan Stanley believes that the situation in Europe is actually slowing down, "especially the 'developing market upside'" - a negative impact on the promotion of UTX. Separately, MS's view is that UTX's upside is "by margins", effectively meaning that it is not looking up this year.

The Closest Catalyst UTX has two acquisitions in the works: IAE, which closes in June, and Goodrich, which closes in July. In fact, Morgan Stanley is waiting for these acquisitions to contribute to incremental profits, which Bazaar is considering UTX in real time. Separately, MS believes that profits will improve as it is considered to be "overstretched" this year.

Description: United Technologies provides high-tech equipment, such as lifts, escalators and ventilation systems in the major and construction sectors of the economy.

Source: Morgan Stanley

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#11: Williams Partners (WPZ)

Branch: Midstream Energy LPS

Current cost: $52, 90

Estimated target price for Morgan Stanley's "bearish" release: $52, 00

Why Bazaar is making a mistake Morgan Stanley believes that recent secondary placements have over-inflated WPZ's promotion. Apart from this, the firm's "inadequate recognition of WPZ's current SHFLU cost as a comparison to historical sensitivity, including limited" is actually limiting the upside of the promotion.

Immediate catalyst: Morgan Stanley has a WPZ stock price, such as expanding investment in "rapid growing shale gas development" like Marcelas, announcing new projects in Utica shale, and increasing bullish attitude in the natural gas market. Here are some triggers.

Explanation: Williams Partners is passionate about building infrastructure that supports the growth of natural gas growing in North America.

Source: Morgan Stanley

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Two parts of the closure icon are crossed to form "X". Refers to end dialogue or cancel notification. < SPAN> Immediate catalyst: Morgan Stanley has expanded investment in "rapid growing shale gas development" like Marcelas, announcing new projects in Utica Shale, and increasing its powerful posture in the natural gas market. They mentioned some triggers on the rise in stock prices.