Morgan Stanley Identifies Five Stocks Poised for Growth
Investment bank Morgan Stanley has spotlighted five stocks that analysts believe have significant upside in the coming months. The list includes Chewy, Ulta Beauty, NuBank, Chart Industries, and Coupang. Each company demonstrates unique strengths that could fuel remarkable share price appreciation.
Chart Industries: A Strategic Merger Boosts Confidence
Analyst Daniel Kutz recently upgraded Chart Industries (GTLS) to a top pick following its merger agreement with Flowserve. This strategic deal accelerates critical initiatives and enhances the company’s growth prospects.
Kutz highlighted that, beyond the merger benefits, Chart Industries’ organic expansion remains compelling. The combined entity is expected to harness significant synergies, bolstering its valuation notably. Over the past year, the stock has appreciated by nearly 18%.
Amid market uncertainties, Chart Industries is seen as a defensive play with a strong growth outlook, making it an attractive opportunity for investors looking to capitalize on industrial innovation.
Ulta Beauty: Riding the Wave of Sector Recovery
Ulta Beauty continues to impress with its market momentum. Analyst Simeon Gutman notes that industry trends indicate improving conditions, suggesting that Ulta's current conservative guidance might actually understate its potential gains.
Tariff risks remain minimal for Ulta, and the company's share price has surged by over 22% in the past 12 months. Sustained market share growth is expected to fuel further upside, positioning Ulta as a standout in the beauty sector.
Coupang: Dominating Korea’s E-Commerce Landscape
Korean e-commerce leader Coupang garners strong support from analyst Seyon Park, who praises the company's robust execution and resilience to tariff pressures. Coupang’s fully integrated fulfillment and delivery network gives it a distinctive edge in South Korea’s competitive e-commerce market.
Despite a remarkable 40% increase in its stock price over the last quarter, Coupang’s valuation remains compelling. The company's ability to consistently increase market share underpins its sustained growth trajectory.
Chewy: Capitalizing on New Market Opportunities
Chewy’s entrance into the veterinary clinic market is viewed as a promising development with significant potential. The $40 billion pet clinic segment represents a lucrative avenue for expansion, with each clinic projected to generate a strong return on investment.
This expansion is seen as a powerful complement to Chewy’s existing e-commerce platform, providing an "underpriced call option" on what is already a compelling investment story.
NuBank: Emerging Leader in Brazil’s Payroll Loan Sector
NuBank is poised to disrupt Brazil’s payroll loan market, currently underestimated by many investors. With projections indicating that NuBank will capture approximately 10% market share by the end of 2026—well above sell-side expectations—there is considerable upside potential.
The bank’s rapid growth in this segment cements its status as a rising powerhouse in Latin America’s fintech landscape.
Summary
Morgan Stanley’s analysts see strong opportunities in these five companies, each bolstered by either strategic mergers, market share gains, or new business ventures. Whether it’s industrial innovation, beauty products, e-commerce delivery excellence, pet care services, or fintech expansion, these stocks offer diverse yet promising prospects for investors seeking growth in 2025.
