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26% Why Morgan Stanley likes energy stocks
The European energy space is forecast to enjoy 26% compound annual growth in earnings per share over the next three years, according to Morgan Stanley. That’s the highest of any sector.
This bullish earnings estimate is based on a price of $58 per barrel of oil. Even on a bear case of $51, ‘oil majors would grow faster than any other sector’ says the investment bank.
Reiterating its ‘overweight’ position on energy, Morgan Stanley notes relative valuations are close to three decade lows.