Morgan Stanley is high on Greek stocks’ prospects
Morgan Stanley confirmed its positive outlook about the prospects of Greek stocks, noting that, despite the protracted rally – now seemingly over, as the Athens Stock Exchange fell for a fourth successive week – valuations of Greek companies remain attractive.
Morgan Stanley funds that invest in emerging markets have increased exposure in Greek banks over the past few quarters, it says, noting that they have all reduced their non-performing loans to single digits.
Morgan Stanley economists expect the major credit rating agencies to upgrade Greek debt to investment grade by the first half of 2024, at the latest, adding that economic growth will be boosted by the European Union’s Recovery Fund, of which Greece is one of the highest recipients.
Finally, Morgan Stanley quotes the International Monetary Fund’s estimate that Greece’s GDP growth in 2023 will be the third highest in the 20-member eurozone.
