Morgan Stanley gave clients its favorite health-care stock picks for next year based on its appraisal of the companies with the best drug pipelines and growth opportunities.
"Several factors are likely to drive industry performance, most important Washington pricing discussions, financial results, pipeline newsflow, tax reform, and transaction activity," analyst David Risinger wrote in a note to clients Dec. 21. "Given recent earnings shortfalls and guidance reductions, we believe many investors want to see and assess 2017 guidance before building larger stock positions. The ability of management teams to regain investor confidence will be key to potentially better stock performance."
Here are three overweight-rated health-care companies Morgan Stanley recommends for 2017 even during the industry uncertainty.