Wednesday's revision of first-quarter economic growth is a bullish sign for the second half of 2015, Morgan Stanley's chief U.S. equity strategist said.
Adam Parker said consensus estimates for the second quarter are too low, and while U.S. markets are at all-time highs, sentiment is relatively weak and has lagged other regions of the world.
"To me the setup is good. Why sell U.S equities when bottom-up numbers are too low, the economy is improving and sentiment's not that ebullient? Sounds like a winner to me," he told CNBC's "Squawk on the Street."
A fairly stronger pace of consumer spending than previously estimated accounted for much of the upward revision. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, was revised up to a 2.1 percent growth pace from the 1.8 percent rate reported last month.
Parker said the United States is in the middle of its growth cycle. In order to call the top, market watchers would need to see the economy and the condition of the consumer and problems bubble up in credit markets.
"Absent that, you can have kind of a slow recovery, a slow retrenchment from the Fed, slow reflation and that could be a pretty positive backdrop for equities," he said.
Morgan Stanley expects mid- to high-single digit returns this year and has a 2,275 target for the S&P 500, he said.