Morgan Stanley analysts named several stocks the bank believes are attractive right now. Wall Street investment banks said investors should take advantage of the situation and buy weakness in companies including SpaceX. Other stocks rated Overweight by Morgan Stanley and screened by CNBC Pro include Darden Restaurants, Cytime, Warner Music Group and Echostar. Darden Restaurants analyst Brian Haber said he is bearish on the owner of chains such as Olive Garden ahead of the company’s Sept. 24 earnings report. “While[Longhorn Steakhouse]is doing well and OG is probably failing, demand for broad-based casual dining remains strong as consumer concerns are clearly on the rise again,” he wrote. Morgan Stanley also raised its price target per share from $236 to $255. Haber said investors should keep in mind the impact of rising fuel prices and inflation, but the stock remains attractive nonetheless. “A best-in-class casual dining operator with a strong portfolio of brands,” he said. The stock price has fallen nearly 5% over the past month. EchoStar analyst Sean Diffley said earlier this week in anticipation of research coverage of satellite stocks that EchoStar has a strong case, especially given its stake in SpaceX. “We conclude that the discount is too wide to ignore and there are too many call options to sit on the sidelines, especially for those of us who take a positive view of both SPCX and Spectrum,” he said. Additionally, Diffley, who has a price target of $134 for EchoStar, sees the potential for other positive catalysts, such as share buybacks. “We believe ECHO stock is an attractive entry point to access SPCX at a discount and one of the few public trading methods that utilize spectrum, which we believe is a rare and valuable asset class.” The stock price is down about 15% this year. read more. Warner Music was recently named a new top pick by Morgan Stanley, according to Warner Music analyst Cameron Manson Perrone. The bank said in a recent note that investors are underestimating the value of Warner’s music library. He wrote, “On catalog value alone, Warner Music stock could be worth more than $30 per share, suggesting upside potential at current levels, even though nothing is attributable to Frontline.” Warner Music’s stock price has fallen more than 9% this year, but Manson-Perrone said growth concerns are overdone. “We view (overweight) WMG stock as offering attractive end-market exposure through a market leader that is simultaneously gaining share and expanding margins,” he said. SiTime “Timing provides clock signals that tell electronic systems when to process and move data. SiTime operates as a pure play in the precision timing portion of the market, where more demanding applications require greater accuracy and stability.” SpaceX “We believe that SpaceX has the potential to drive increased intelligence per dollar per watt. …However, for investors who want resilient exposure to long-term trading while mitigating some of the short-term volatility, we think SpaceX may continue to exhibit better stability relative to its peers in AI portfolios.” “[Longhorn Steakhouse]is doing well, and while OG will probably fail, demand for broader casual dining still looks strong as consumer concerns are clearly on the rise again…a best-in-class casual dining operator with a strong brand portfolio.” EchoStar “We conclude that this discount is too wide to ignore and there are too many call options to sit on the sidelines. Especially for those who take a positive view of both SPCX and Spectrum, as we do…ECHO stock represents an attractive entry point to access SPCX at a discount, and one of the few to take advantage of Spectrum.” “We believe this is a rare and valuable asset class.” Warner Music “The catalog price alone could value Warner Music shares above $30 per share, suggesting potential for upside at current levels, even though nothing is attributable to Frontline.” We see WMG stock offering attractive end-market exposure through a market leader that is gaining share and increasing margins at the same time.”
