Morgan Stanley beats estimates for Q3 revenue by $1 billion
Morgan Stanley has named a number of European stocks that analysts predict will become "the best" and "the worst" this season reporting.
Analysts who conducted the study said they expect fourth-quarter earnings to be moderate compared to the recovery seen in the third quarter of 2020, given the restrictive measures imposed across Europe in the past few months..
«However, we believe the numbers are achievable and Q4 should be a pleasant surprise for you.», – analysts said highlighting «13 stocks for which MS Research analysts firmly believe in the results».
Morgan Stanley noted that its quarterly review was positively skewed and analysts saw «moderate upside risks in the fourth quarter, especially for cars, beverages, business services, chemicals, internet businesses, semiconductors and freight».
Conversely, they determined «risks to aerospace and defense, infrastructure, leisure, medical technology, software and airlines».
Analysts led by Ross A. Macdonald (Ross A. MacDonald) said they have deep confidence in the 13 stocks at the start of the earnings season. Of these, they rated eight favorably: the consulting firm Capgemini, the energy company EDF, Evolution Gaming, the investment management company Man Group, the Norwegian aluminum and renewable energy company Norsk Hydro, Santander, Siemens Healthineers and the global engineering group Trelleborg..
First to report is Siemens Healthineers, which is to publish first-quarter results on Monday.
Meanwhile, analysts negatively assessed the Danish engineering company FLSmidth, the Dutch banking group ING, the French industrial group Legrand, Straumann, specializing in restorative dentistry, and the French payment company Worldline..
Morgan Stanley polls its industry analysts ahead of each season of results, asking them to determine where they think results can be achieved versus consensus expectations for each sector, and where they have confidence in the results..
Noting that the results for the fourth quarter «must be worthy», they cited several factors as reasons for their positive outlook, including the continued robustness of economic data, «less significant» decrease in the exchange rate difference in the fourth quarter and positive expectations of analysts.
In this regard, they stated that their analysts’ expectations for the fourth quarter were very strong: «As in the previous quarter, consensus expectations generally decline in the weeks immediately preceding the reporting season. However, as in the previous quarter, consensus expectations for the 4th quarter have remained largely unchanged in recent weeks.».