Morgan Stanley: The consensus narrative has been improving thanks to the resilience of US macro data and the expectation of a soft-landing, but in an environment of still high rates and with the hasty deterioration of data in the Chinese economy, uncertainty remains around where we are in the economic cycle. In this context, it is important to find stocks that offer Alpha through self-help initiatives such as improved governance, strategy, cost-cutting, capital structure improvements, etc. In recent weeks, the Research team has published several OW ideas that coincide in having self-help plans: Akzo Nobel, ABI, Carrefour, Daimler Truck, EssilorLuxottica, Ferrovial, Glencore, Lanxess, Saipem, Smith & Nephew, SocGen and Stellantis. The 12 stocks trade at 9.2x PE 2025 vs 11x on the MSCI Europe and our analysts see an average 2Y EPS CAGR growth of 21% and 2025 EPS estimate +8% vs consensus.
Ferrovial, among companies with self-help plans, trading at P/E of 9.2x by 2025
