December 3, 2023


As we head towards the end of 2023, investors are eager to assess the market’s prospects after the significant rebound witnessed since last October. Mike Wilson, the renowned strategist from Morgan Stanley, is pulling back from his uber-bear reputation, suggesting that the current market rally is policy-driven and indicative of a late-cycle phase. With several supportive factors in play, including reduced inflation, a slowdown in Fed tightening, and the expectation of easier monetary policies, Wilson’s team at Morgan Stanley is optimistic about the future. As a result, the firm’s analysts have identified two stocks poised for substantial gains – Altus Power (AMPS) and United Airlines Holdings (UAL).

Altus Power (AMPS) – Leveraging Solar Energy Niche

Altus Power operates in the solar energy niche and has received a boost from the Biden Administration’s policies aimed at reducing inflation. The company offers tailored solar power installations for commercial, industrial, and community use across the United States. Additionally, Altus provides energy storage and electric vehicle charging services, with a focus on sustainability and renewable energy options. Notably, Altus has already installed over 4.55 billion kilowatt-hours of solar power since 2009.

Recent Performance and Growth Potential:

Altus reported impressive Q1 2023 results, with a 53% year-over-year increase in revenues. The company’s commitment to expanding its network is evident, with acquisitions and new installations in various states. The community solar market is a key area of opportunity for Altus, leveraging its existing customer base to provide clean energy to residential customers without rooftop solar capabilities.

Morgan Stanley’s View:

Morgan Stanley’s analyst Andrew Percoco is optimistic about Altus’ potential, setting an Overweight (Buy) rating and a $10 price target, indicating a 58% potential upside within a year. Overall, the stock holds a unanimous Strong Buy consensus rating based on six positive analyst reviews.

United Airlines Holdings (UAL) – Soaring High Post-COVID

United Airlines, one of the major US legacy carriers and a global leader in terms of available seat miles, is poised for growth. The airline has seen consistent year-over-year earnings gains since 2022, benefiting from the post-COVID economic rebound and the lifting of travel restrictions. United operates extensive daily routes to various destinations worldwide, making it one of the North American air carriers with the most comprehensive global route network.

Recent Earnings and Future Outlook:

United’s Q2 2023 results were impressive, with a revenue increase of over 17% YoY and non-GAAP EPS profit of $5.03, outperforming estimates by 97 cents. The company’s guidance on full-year adjusted EPS is upbeat, further bolstering investor confidence.

Morgan Stanley’s View:

Morgan Stanley analyst Ravi Shanker rates United Airlines as Overweight (Buy) with a one-year price target of $80, suggesting a 52% potential gain from current levels. With 10 Buy ratings among 15 recent analyst reviews, the stock holds a Moderate Buy consensus rating.


As 2023 progresses, the Morgan Stanley team sees significant upside potential for Altus Power and United Airlines Holdings. The solar energy sector’s policy boost and United’s post-COVID rebound position them for substantial growth. Investors may find these stocks appealing as they navigate the late-cycle phase and shifting monetary policies.

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