The market plunge after the Brexit vote engulfed the stocks of companies with limited exposure to the European Union. Morgan Stanley sees them as buying opportunities.
"We maintain that even during macro-driven market dislocations, bottom-up analysis remains as important as ever — and we think such bottom-up analysis can reveal opportunities in stocks that may have been caught up in the sell-off despite limited exposure to the macro effects," Morgan Stanley's research team wrote in a note to clients Monday.
The note added, "We asked our U.S. equity analysts to identify overweight-rated stocks — especially those with limited downside to their bear case — whose fundamentals are unlikely to be materially negatively impacted by Brexit. ... For each of these names, we believe the post-vote weakness creates an opportunity to add to positions."
Here are 7 stocks Morgan Stanley recommends to buy on a Brexit pullback.