Morgan Stanley’s Renewable Energy Stock Picks For 2015

A recent Morgan Stanley report focused on the future of renewable energy. Analysts discussed long-term changes that will come about in the sector in the coming years.

Solar Weakness

Analysts see several factors negatively impacting the solar industry in upcoming years. First, as the industry continues to strengthen, subsidies and other government support will likely be reduced or eliminated. In addition, analysts see physical limitations on solar energy, such as a lack of suitable land available in countries such as India. Continue reading

Jefferies Downgrades Actuant

Analysts at Jefferies downgraded Actuant Corporation ATU 4.29% Friday from Buy to Hold and setting a $30.00 price target. Actuant is a diversified manufacturing and distributing company that produces a wide range of industrial equipment, including hydraulic and mechanical tools. Jefferies analysts expressed their concern that Actuant’s earnings will continue to lag for the third straight year.

Modest Upside

Actuant stock was down 4 percent Friday, recently trading at $26.87. Jefferies’ $30 price target represents about an 11.5 percent upside for the stock from current levels. Actuant stock has had a bad 2014, down more than 26 percent yea- to-date. Continue reading

Oppenheimer Initiates Coverage On Twitter, Believes Stock Is Appropriately Priced At Current Levels

Analysts at Oppenheimer initiated coverage of Twitter Inc TWTR 0.95% Friday by issuing a Perform rating and setting a $36.00 price target. Twitter is a global social networking platform with over 280 million active users.

The Numbers

While Oppenheimer analysts fully recognize the strength in Twitter as a company, they believe that Twitter’s stock is appropriately priced at current levels. “While TWTR is the best Internet platform for real-time content discovery, we believe that the stock’s current valuation of 10x 2015E sales, a 52% premium to peers, fully reflects future prospects based on current growth rates.” Continue reading

Has Intel Missed A Huge Window Of Opportunity?

A recent Morgan Stanley report took an in-depth look into Intel Corporations’s INTC 1.76% unique manufacturing advantage that may soon be disappearing. Analysts believe that Intel’s window of opportunity to capitalize on its FINFET technology and expand into new markets will likely close in 2015.

The FINFET Monopoly

Analysts discuss Intel’s FINFET three-dimensional transistor manufacturing technology as one reason why Intel will have a tougher road ahead. For the past three years, Intel has enjoyed a monopoly on FINFET. Continue reading

Morgan Stanley: Casual Dining Is Picking Up

A recent report by Morgan Stanley presents the case that 2015 could be a great year for restaurant stocks. Analysts believe that there is no need to be skeptical of the recent positive turn in casual dining trends, as they believe the uptick in traffic is due to strengthening underlying demand.

Traffic Jam

The bad news up front for restaurants is that casual dining traffic has fallen for eight consecutive years. Over-capacity and a shift toward fast food have driven casual dining traffic 15 to 25 percent below peak 2006 numbers in mature casual restaurants such as Cheesecake Factory Inc CAKE 1.24% and Brinker International, Inc. EAT 0.47%. However, analysts see a return to minimal (up to 1 percent) traffic growth in 2015. Continue reading

Morgan Stanley Sees Apparel Lagging For The Next 5 Years

Morgan Stanley analysts believe that the price deflation that has plagued the world of U.S. apparel retail is here to stay. In a recent report, analysts forecast a meager 1 to 2 percent apparel sales growth over the next five years.

More Consumer Choices

One of the major problems facing the apparel world is that consumers are increasingly spending disposable income on non-apparel products. In 1972, apparel made up 7 percent of personal consumption expenditures in the United States. As of 2013, that number has shrunk to 3 percent, while expenditures such as healthcare, consumer electronics, housing and recreation have all gained share. Continue reading

Bank Of America’s Top Stock In The Online Travel Sector

In a recent report, Bank of America analysts discussed what investors can expect from the online travel sector in 2015. Analysts describe a rapidly-evolving business with many positive growth catalysts and several risks ahead in 2015.

Growth Drivers

Analysts expect a 7 percent year-over-year growth in the online travel market in 2015. This projected growth rate suggests $381.2 billion in online bookings next year. The report includes estimates for online penetration of 43.3 percent in the United States, 41 percent in Europe and 39.5 percent in Asia. Bank of America expects penetration in all of these markets to eventually reach 50 percent. Continue reading

Why Morgan Stanley Thinks The Oil Services Sector Will Evolve To Survive Collapse In Crude Prices

A new report by Morgan Stanley looks at how the crash in oil prices will transform the oil services industry in the long-term. Analysts believe that a period of consolidation in the sector will lead to a healthier, stronger industry with higher margins once oil prices recover.

Halliburton/Baker Hughes Deal

Despite the possibility that Halliburton Company’s HAL 3.21% recent acquisition of Baker Hughes Incorporated BHI 2.47% raises antitrust concerns, analysts believe that the deal will be approved. The new company would be the largest oil services company, with an estimates $57 billion in sales in 2014 versus $49 billion for Schlumberger NV SLB 3.91%. Analyst Ole Slorer sees a massive amount of market share split between post-deal Halliburton and Schlumberger. Continue reading

A Major Technical Breakdown For Kandi Technologies Stock?

Shares of Kandi Technologies Group Inc KNDI 0.95% have been extremely volatile over the past week. After dropping 7.0 percent on December 12 and 9.2 percent on Monday, Kandi stock came roaring back on Tuesday with a 6.6 percent jump. However, from a technical standpoint, some major damage may have already been done.

The Breakdown

Since breaking above $10 for the first time at the tail end of 2013, Kandi stock tested and found support at around $11.00 no less than six times this year, establishing a strong support line. After peaking right around $22.50 in March and then again in July, the stock had established a clear technical resistance line. Continue reading

Morgan Stanley Is Bullish On Office REITs

Despite the fact that the stocks of large office real estate investment trusts (REITs) have more than doubled in the past five years, analysts at Morgan Stanley believe that there is still opportunity to profit from high-quality U.S. office space. In a recent report, analysts give several reasons why they believe that the office REIT party is far from over.

Real Estate As An Investment Class

Analysts see evidence that investing in real estate is becoming more popular as a means of diversification. A recent Cornell University study indicated that institutions such as insurance companies, public pensions and family offices are under-invested in real estate by about $70 billion based on their specified target allocations. The report indicates that prime office buildings will likely remain a popular investment target for these institutions. Continue reading