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Morgan Stanley analysts at their annual Technology, Media and Telecom (or TMT) Conference highlighted seven best stocks ideas.
The stocks are Dell Technologies (NYSE:DELL), DoorDash (NASDAQ:DASH), Mastercard (NYSE:MA), NICE (NICE), Salesforce (CRM), Spotify (SPOT), and Western Digital (WDC).
All overweight-rated:
- Dell Technologies Inc. (DELL) – Price target: $120.5; percentage to MS’ price target: 6%. Leveraged to a cyclical recovery, with total revenue set to grow well above 3-4% long-term growth algorithm.
- DoorDash Inc. (DASH) – Price target: $145; percentage to MS’ price target: 9%. There are “multiple paths toward a bull case of $3.9B” for the 2026 adjusted EBITDA due to faster core growth, better U.S. restaurant economics, and smaller incremental investment losses.
- Mastercard Inc. (MA) – Price target: $536; percentage to MS’ price target: 15%. It has a consistent earnings growth, benefiting from resilient consumer spending.
- Nice Ltd. (NICE) – Price target: $290; percentage to MS’ price target: 21%. Analysts see a $26B market opportunity by 2027, “reflecting both our assumption for cloud adoption to reach 50%, and for about 15% of contact center interactions to be fully virtualized.”
- Salesforce Inc. (CRM) – Price target: $350; percentage to MS’ price target: 16%. Shares continue to trade at a discount, compared to large cap software peers. It also is displaying above consensus top and bottom line growth.
- Spotify Technology (SPOT) – Price target: $270; percentage to MS’ price target: 0%. The company is a market leader at the beginning of a profitability inflection, analysts said.
- Western Digital Corp. (WDC) – Price target: $73; percentage to MS’ price target: 14%. WDC is creating two standalone businesses later this year that would create significant value in the hard drive business. “We value the drive business at $33 (a 10% discount to comparable Seagate on EV/sales), and the memory business at $40 (10x trailing 6-year average earnings of about $4, vs. MU at 20x trailing 6-year average earnings),” analysts said.