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Morgan Stanley's 10 Best Ideas, the best U.S. stocks based on "favorable risk-reward profiles"...

Morgan Stanley's 10 Best Ideas, the best U.S. stocks based on "favorable risk-reward profiles" and "out-of-consensus thinking": SLB, CTL, UNP, BWA, RNR, AAPL, UA, TGT, TDC, CBS.
Comments (5)
  • Long AAPL is as out of consensus as it gets!
    9 Apr 2012, 12:15 PM Reply Like
  • As to what Apple will earn to justify all that, Munster sees the company increasing smartphone share and maintaining tablet computer share:

     

    For CY12, we expect $44.76 in EPS, 27% y/y growth. For CY15, we expect $80.18, 23% y/y. The most important market is the smartphone market, where we estimate Apple had 19% share last year, which we expect to go to 33% in CY15, with ASP’s going from ~$580 in CY11 to an estimated ~$435 in CY15. Moving forward, we believe the smarpthone market is boiling down to essentially two players at scale: Apple and Samsung […] ltimate shift of the third generation iPad to a $399 price point in CY13 after the fourth generation iPad is released should enable the company to sell a tablet with a retina-display screen for under $400. Second, we believe that Apple will launch an iPad with a smaller screen at a sub-$300 price point. Given our iPad sales assumptions, we believe that Apple will have 60% tablet market share in CY13 from 64% in CY12. We believe Apple will have 55% market share in CY14 and 60% share in CY15. The reason we expect growth/share to accelerate in CY15 is that we believe the iPad will become more widespread as both an enterprise and education device.

     

    Munster adds that Apple could add $4 per share to his 2015 estimate of roughly $80 in net profit through a television set, though he’s not formally modeling that at this point.

     

    Using a 14 times multiple of $84 would put the stock above $1,000, he writes. Specifically, $1,176.
    9 Apr 2012, 12:33 PM Reply Like
  • I attempting to see what all of these have in common, w the exception of AAPL the are all trending up for 12 mos, but experiencing a dip for 5 days, yes? PE's are not consistent, some high some low. Innovators? Don't know, but UA seems interesting w niche undergarments! Hmmm ...
    9 Apr 2012, 04:58 PM Reply Like
  • All stocks near 52 wks high. Thank you very much.
    9 Apr 2012, 08:07 PM Reply Like
  • Ha, yes, but why these 10, tons of stocks are at their 52 wk high, eh?
    9 Apr 2012, 08:34 PM Reply Like
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