Morgan Stanley Bullish on These 3 Stocks for 90% Upside (Or More)

A trio of headwinds are buffeting the markets, making investors skittish. Stealing the headlines is the Russia-Ukraine situation. Foreign policy pundits are openly speculating on the prospect of war, in the event that Russia invades its neighbor and the US objects. For now, that situation is fluid and unpredictable.

On the domestic front, stubbornly high inflation remains a problem – and it’s continuing to rise. Market watchers are expecting the Federal Reserve to raise interest rates at least 3 times this year, perhaps by as much as 50 basis each time. While high by recent standards, that would still keep rates historically low, and so may or may not curb inflation.

In the meantime, the 4Q21 earnings have been largely positive, with aggregate year-over-year gains near 15% and some three quarters of companies reporting results above expectations.

The overall result, for the stock market, has been some 6 weeks of increased volatility to start off 2022. It raises the question, ‘How do you find the next hot stock to buy in this environment?’ One way might be to screen for stocks that have been endorsed by analysts at major investment banks in particular, such as Wall Street banking giant Morgan Stanley.

The firm’s stock analysts are showing their upbeat outlook by selecting the stocks they see as winners for the coming year – and winners with substantial upside, on the order of 90% or better. Using the TipRanks database, we’ve looked up two of these Morgan Stanley picks, to see what makes them stand out.

Safehold (SAFE)

We’ll start with Safehold, a pioneer in the ground lease segment of the real estate investment trust sector. Ground leases are way for landowners to ‘unlock value,’ by permitting long-term tenants to build on and make improvements to land holdings, with the stipulation that all such development will revert to the property owner when the lease ends. The company offers long-term ground leases, for up to 99 years. Safehold has a $4.5 billion portfolio of such ground lease properties.

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That portfolio brought the company $47…

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