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Morgan Stanley predicts these stocks will continue to rise throughout the summer



Morgan Stanley has identified a slate of stocks that are expected to have significant room to grow this summer. One of the standout picks is Hasbro, which is predicted to see a resurgence in demand for toys, making it a strong investment opportunity. Another top pick is Progressive, an auto insurer that is thriving with revenue growth and margin expansion, positioning it for further success in the coming years. Warner Music Group is also considered undervalued and offers a unique opportunity for investors, according to analyst Benjamin Swinburne.

Hasbro, despite recent stock declines, has a positive outlook due to the bottoming out of toy demand and signs that market share declines are stabilizing. Hasbro’s Monopoly Go for Android and Apple devices is expected to contribute to the company’s growth, along with a promising first-quarter earnings report. Similarly, Progressive has been named a top pick due to its attractive valuation and strong growth prospects for 2024 and 2025. Despite concerns about its valuation, analyst Bob Jian Huang believes that Progressive is undervalued compared to other popular stocks.

Warner Music Group has also been highlighted as a top pick by Morgan Stanley, with analyst Benjamin Swinburne pointing to positive developments in the music industry. Swinburne believes that music companies like Warner have pricing power and offer dependable streaming revenue, making them a compelling investment. Additionally, labels like Warner are capitalizing on opportunities in artificial intelligence and artist-centric models to increase the value of music and music labels.

Bath & Body Works has also caught the attention of analysts at Morgan Stanley, who believe that the company’s home fragrance business could return to growth this year, potentially earlier than expected. With a target price of $56, Bath & Body Works is poised for a rebound as it normalizes back to pre-Covid trends. Furthermore, Dell Technologies is highlighted as a stock with significant upside potential, driven by factors such as the turning of the hardware cycle, accelerating capital returns, and an emerging Gen AI story.

Overall, these top picks from Morgan Stanley offer investors a diverse range of opportunities for growth and value. From established companies like Hasbro and Progressive to undervalued stocks like Warner Music Group, there are options for investors looking to capitalize on the potential for growth this summer. With a mix of industries and growth prospects, these stocks are well positioned for success in the long term.

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