Ticker: AXP

Sector: Financials

Price Target: 100.00

Div. Yield 2014: 1.1%

According to Morgan Stanley analyst Betsy L. Graseck, "AXP is significant levered to an improving US economy and consumer". Additionally, they expect that more small merchants will accept American Express, boosting AXP's US acceptance from 70% of Visa/Mastercard to 90% 18 to 24 months.

Source: Morgan Stanley

Ticker: AMGN

Sector: Healthcare

Price Target: 140.00

Div. Yield 2014: 2.0%

Matthew Harrison of Morgan Stanley writes that they see "margin expansion and modest pipeline success as offering upside from current levels based on durable base business cash flows that provide downside support". However, a lack of margin expansion and increased biosimilar competition could lead to an investment risk.

Source: Morgan Stanley

Ticker: AAPL

Sector: Technology

Price Target: 98.57

Div. Yield 2014: 1.9%

Katy Huberty of Morgan Stanley writes that they "expected iPhone share gains and growth re-acceleration driven by [the] larger screen iPhone". Additionally, they see iWatch and "new services" helping to "accelerate growth and expand margins".

Source: Morgan Stanley

Ticker: CP

Sector: Transportation

Price Target: 215.00

Div. Yield 2014: 0.7%

Morgan Stanley analyst William Greene writes: "The turnaround at [Canadian Pacific Railway] has the potential to be the most compelling investment opportunity in rails for the next few years. As cost cutting comes to an end, low costs [and] high service can accelerate revenue growth toward 10%".

Source: Morgan Stanley

Ticker: ETN

Sector: Consumer Discr./Industrials

Price Target: 90.00

Div. Yield 2014: 2.5%

Nigel Coe of Morgan Stanley suggests that there will be a truck and hydraulic rebound in 2014-2015. Additionally, they "see an upside to the $325 million cost synergy target". Finally, they believe that "the stock is currently trading at a steep discount to peers and an end-market rebound can strengthen the case for a re-rating".

Source: Morgan Stanley

Ticker: EL

Sector: Consumer Staples

Price Target: 87.00

Div. Yield 2014: 1.0%

Dara Mohsenian, CFA writes that they project a 6% long-term organic revenue growth for Estee Lauder because of their "attractive product category growth in beauty" and because of "market share gains in the overall beauty segment, with strong growth particularly from expansion in emerging market and high growth in the travel retail and e-commerce channels".

Source: Morgan Stanley

Ticker: HES

Sector: Energy/Utilities

Price Target: 110.00

Div. Yield 2014: 1.0%

Evan Calio of Morgan Stanley writes that the key value drivers of Hess Corporation are production growth, further share repurchases funded by asset divestitures and monetizations, and the highest leverage to higher oil prices.

Source: Morgan Stanley

Ticker: LB

Sector: Retail

Price Target: 66.00

Div. Yield 2014: 3.9%

Morgan Stanley's Kimberly Greenberger sees the value drivers of L Brands Inc. to be store growth, (especially internationally), same store sales, and the continued supply chain improvement, strong sales and inventory management initiatives.

Source: Morgan Stanley

Ticker: MGA

Sector: Consumer Discr./Industrials

Price Target: 125.00

Div. Yield 2014: 1.3%

Ravi Shanker of Morgan Stanley writes that the key value drivers of Magna International are that it is a top-5 global supplier with a highly diversified product footprint and it has the industry's strongest balance sheet.

Additionally, "MGA has eliminated its dual-class share structure by buying out the chairman and founder, which should eliminate historical corporate governance concerns and allow the company to purse a more aggressive growth strategy."

Source: Morgan Stanley

Ticker: MA

Sector: Technology

Price Target: 88.0

Div. Yield 2014: 0.6%

Smittipon Srethapramote writes: "Fundamental growth potential remain strong and we believe the company can continue to generate 20% EPS growth over the next several years. Growth potential in underpenetrated emerging markets could be aided by increased adoptions of mobile [and] smart phones".

Source: Morgan Stanley

Ticker: MON

Sector: Materials

Price Target: 150.00

Div. Yield 2014: 1.3%

Vincent Andrews of Morgan Stanley writes that they see, "biotechnology as the longterm key to increasing land productivity, and believe that Monsanto is best positioned to capture increasing value".

Source: Morgan Stanley

Ticker: NKE

Sector: Retail

Price Target: 88.0

Div. Yield 2014: 1.2%

According to Jay Sole, "Nike dominates the industry and we think it's at a tipping point of major EPS growth acceleration sustaining at 16% 4-year EPS CAGR." Additionally, it's powerful balance sheet is helping it create a "virtuous circle of outsized investment spending, operational excellence, brand strength, and ROIC gains".

Source: Morgan Stanley

Ticker: PRU

Sector: Financials

Price Target: 106.00

Div. Yield 2014: 2.3%

Morgan Stanley sees Prudential as "the most attractive" large-cap life insurer because of its strong return profile, reasonable growth, and "compelling" valuation. They expect Prudential to continue to deliver solid upside across its equity-sensitive units and international.

Source: Morgan Stanley

Ticker: XL

Sector: Financials

Price Target: 39.00

Div. Yield 2014: 1.8%

Kai Pan of Morgan Stanley writes that XL's global diversified insurance franchise allows the company to "access markets with favorable returns". Additionally, XL Group has a "strong balance sheet with $700 million excess capital" and its discount-to-book valuation provides compelling risk-return.

Source: Morgan Stanley

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