Cut through the GameStop mayhem with these ‘sweet spot’ stocks, Morgan Stanley says

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New for subscribers: Cut through the GameStop mayhem with these ‘sweet spot’ stocks, Morgan Stanley says. Check out CNBCPro today.

Morgan Stanley said that while such volatility is "unsettling," it assessed whether such moves are a signal of change or just internal market dynamics — what it called "noise."

"We are firmly in the latter camp and would treat such periods as more of an opportunity than a threat," analysts led by Graham Secker said in a research note Monday. The investment bank listed its "sweet spot" European stocks that combine an attractive valuation with good "pricing power" — which means they are likely to be able to raise prices and increase margins while maintaining sales.

 

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