That’s according to a team at Morgan Stanley led by chief U.S. stock-market strategist Mike Wilson, who told clients that its conviction in quality stocks has increased of late amid rising rates. Morgan Stanley has in the past described quality companies as well-managed with sustainably high, long-term returns and strong balance sheets.

A rallying dollar is likely to drive a big divide in Corporate America’s earnings scorecard this season, with domestically oriented sectors outshining those with large international revenues, according to Morgan Stanley strategists.

Morgan Stanley hiked its price target on Tesla (NASDAQ:TSLA) on Monday as the firm turned even more bullish on the potential for the robotaxi business to be a game changer.Analysts Adam Jonas and his team said they increasingly recognize the importance of embodied AI in Tesla's (NASDAQ:TSLA) future,

Citing advances in autonomous vehicle (AV) technology and embedded artificial intelligence as main drivers, Morgan Stanley ( NYSE:MS) has raised its price target for Tesla ( NASDAQ:TSLA) to $430 from $400. It also presents an optimistic target for Tesla's bullish scenario, assigning an $800 price per share.

Among 26 home price forecast models tracked by ResiClub, Morgan Stanley is the most bearish on the 2025 housing market.