Morgan Stanley’s 5 Stock Picks for 2023

In this article, we will take a look at Morgan Stanley’s top 5 stock picks for 2023. For more Morgan Stanley stocks, head on over to Morgan Stanley’s 15 Stocks Picks for 2023.

5. Palo Alto Networks, Inc. (NASDAQ:PANW)

Share Price Upside: 26%
Number of Hedge Fund Holders: 83

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of Morgan Stanley’s top stock picks in the technology sector, engaged in providing cybersecurity solutions. It offers firewall appliances and software security management solutions or the global control of network security platforms. Palo Alto Networks, Inc. (NASDAQ:PANW) also offers subscription services covering threat protection, malware, and persistent threats.

Palo Alto Networks, Inc. (NASDAQ:PANW) has gained over 78% year to date, outperforming the overall market. The outperformance comes from growing demand for the company’s solution and integration of artificial intelligence. Palo Alto Networks, Inc. (NASDAQ:PANW) also announced it is building a cloud service infrastructure in Switzerland. Morgan Stanley analysts raised their price target on the stock to $302, implying a 26% upside potential.

Palo Alto Networks, Inc. (NASDAQ:PANW) had 83 hedge funds out of the 910 that Insider Monkey followed as investors by June 2023. The hedge fund with the remarkable holding in the company was 

ZWEIG DIMENNA PARTNERS, run by Joe Dimenna, with a stake worth $5.47 million.

In its Q2 2023 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy offered the following insight regarding Palo Alto Networks, Inc. (NASDAQ:PANW):

“Another area of strength was the Information Technology sector. At the lead was a 28% gain from Palo Alto Networks, Inc. (NASDAQ:PANW). A global provider of network and cloud-based cybersecurity systems, Palo Alto’s revenues and earnings were higher than anticipated, which led management to increase its guidance for the balance of the fiscal year. Palo Alto’s billings rates grew faster than expected—especially for its Next-Gen Security platform—while at the same time the company’s margins strengthened. As its shares climbed, we trimmed our position.”

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