Morgan Stanley is pounding the table on several stocks as investors wait to see if October markets are tumultous or quiet. The investment bank says these top companies are well positioned for the long term. They include Lineage, Thermo Fisher Scientific , M & T Bank and Taiwan Semiconductor .
Lineage Analyst Ronald Kamdem is doubling down on the cold storage warehouse company following a series of constructive management meetings. Morgan Stanley said that even though recent data shows that total cold storage inventory has been down, Lineage still sees plenty of room for growth. "We viewed this to be one of the most bullish comments of the meeting, and suggests multiple avenues of upside to a solid mid-single digit growth 'floor', through both internal and external growth," he wrote.
Kamdem is particularly bullish on Lineage's opportunities in mergers and acquisitions. "With ~33% market share in the U.S.
and ~12% market share globally, we see LINE as the acquirer of choice, with the potential for $500mn-$1bn of acquisitions annually for the next 3-5 years in addition to future development opportunities," he wrote. Lineage shares are off more than 7% in the past month, but at current levels they are just too attractive to ignore, said Morgan Stanley, the lead underwriter in the $78-a-share IPO in July. "Reiterate [overweight] and top pick," Kamdem said.
Thermo Fisher Scientific The medical technology company is firing on all cylinders, according to a team led by analyst Tejas S.