Morgan Stanley Raises China Stock Targets Again, Citing Earnings
This article is for subscribers only.
Morgan Stanley strategists raised their outlook for Chinese stocks for the second time in a little more than a month, citing upside for valuations amid an improving outlook for earnings.
“MSCI China is finally on its way – looking set for the first earnings beat after 13 consecutive quarterly misses, while earnings estimate reductions are approaching inflection,” strategists including Laura Wang and Jonathan Garner wrote in a note dated Tuesday. “China deserves a valuation on par with MSCI EM, cutting its longstanding discount,” they added.