< The 2016 All-Europe Research Team
Huw van Steenis & team
Morgan Stanley
First-place appearances: 5
Total appearances: 24
Team debut: 1989
Huw van Steenis’ Morgan Stanley team advances from third place to second, a position they held most recently in 2013. These London-based researchers are "always aware of news and key themes from the sector," reports one money manager who especially values their "annual financial conference, which provides a unique opportunity to meet bank CEOs." In general, van Steenis and his associates are "in-line for our sector — with worry about headwinds from negative rates, emerging-markets earnings and sluggish loan growth — but see the sector already valued for little growth," reports the 46-year-old leader. Factors such as European Central Bank and U.S. Federal Reserve policy moves, the industry’s adapting to new regulations and a sluggish economy in China will combine to make 2016 a pivotal year for the region’s banks, he adds. "We’re well below consensus for net interest income so prefer those banks geared to commissions and trading income, or some of the restructuring banks," van Steenis says. Of the 50 names in their portfolio, Swiss multinational financial services provider Credit Suisse Group offers the most potential upside, the analysts contend. "While patience is required — we think over the coming 18 months — today is a good entry point to benefit from rightsizing, rethinking the model, gritty cost cutting and growth in wealth management," he explains. At Sf30, their price objective for the stock represents a 60.3 percent premium to its trading level in mid-January.