< The 2015 All-Europe Research Team

Total Appearances: 6

Team Debut: 2003

Under the direction of Michael Jüngling, 42, Morgan Stanley’s analysts rise from No. 2 to reclaim the first-place position they earned from 2011 through 2013. The researchers continue to have a positive view of Europe’s medical technologies and services shares, forecasting that the sector will outperform the broad market in 2015. It did last year, as they correctly predicted it would, rising 18 percent against the regional market’s gain of just 2 percent. “Valuation is currently at 1.5 times relative price to earnings, compared to the ten-year average at 1.7 times,” notes Jüngling, “and we believe the discount is unwarranted, especially as fundamentals have started to improve.” He and his colleagues report on 15 names in the group, and among their favorites for this year is Sweden’s Elekta, which produces radiation therapy and radiosurgery-related equipment for use in treating cancers and neurological disorders. “We expect the negative earnings revisions to have troughed or be close to troughing,” says the New York–headquartered team leader. “Furthermore, we see Elekta as a self-help story and expect management’s initiatives to improve cash-flow generation, which should reduce the high, short interest.” His team’s price objective for the shares is 100 Swedish kronor, which implies a 12.6 percent upside to their trading value at the end of January.