Here are four top stock ideas for the long haul from Morgan Stanley, including JP Morgan, Salesforce

Published Wed, May 16 20184:57 PM EDT

Morgan Stanley revealed its 30 best long-term stock picks on Wednesday, predicting choppy, range-bound equity trading at the index level to come. "We have tried to identify the best franchises, not the most undervalued stocks," Morgan Stanley's research group wrote Wednesday. "The main criterion is sustainability — of competitive advantage, business model, pricing power, cost efficiency, and growth. We selected the companies that scored exceptionally well on these criteria." The firm called the basket of ideas its "30 for 2021" group, a selection of "quality" stocks to hold over the next three years. Here are four overweight-rated stocks recommended by Morgan Stanley on the list, along with the firm's current price targets. 1) Activision Blizzard (ATVI) Morgan Stanley has a $75 price target for Activision Blizzard shares, representing 6.6 percent upside from Wednesday's close. "We see Activision Blizzard driving and continuing to benefit from the industry's digital shift from "units sold" to a model based on users, engagement, and digital monetization. We see digital in-game offerings leading to recurring and growing user bases, higher per-game engagement, and more monetization opportunities." "Through its Overwatch League, Call of Duty World League, and Major League Gaming franchises, we believe Activision Blizzard is well-positioned to take advantage of the growth in eSports." 2) J.P. Morgan Chase (JPM) The firm set a price target for J.P. Morgan Chase shares of $135, which is 19 percent higher than Wednesday's closing price. The bank is "our top pick among the U.S. money center banks: J.P. Morgan's push into new markets, opportunity to gain share, efficiency improvements, and benefit from deregulation drive our positive long-term view." "J.P. Morgan is opening 400 branches to enter 15-20 new markets over the next five years, forging ahead on its long-term growth strategy. We expect J.P. Morgan can reach top five in each of these new markets." 3) Salesforce.com (CRM) Morgan Stanley has a $140 price target for Salesforce.com shares, representing 8 percent upside to Wednesday's close. "Salesforce.com finished off fiscal year 2018 with all growth metrics exceeding expectations, as the pace of new business acquisition accelerated year over year. Although this subdues margins expansion near-term, a clear path to $20 billion of revenues justifies the investments. Salesforce.com recently announced the acquisition of MuleSoft, whose AnyPoint integration Platform adds an incremental roughly $10 billion to its market opportunity." 4) Prologis (PLD) Morgan Stanley 's price target on Prologis shares is $70, which is 10 percent higher than Wednesday's close. "Prologis recently announced a merger with DCT Industrial. We believe the pending merger will allow for sustained rent growth and multiple support given slight differences in expiration timing/composition between the two companies (particularly in 2020-21) and increased share in key markets."

Attendees play Activision Blizzard Inc.'s Overwatch computer game at the AOC Open e-Sports event in Tokyo.

Akio Kon | Bloomberg | Getty Images

Morgan Stanley revealed its 30 best long-term stock picks on Wednesday, predicting choppy, range-bound equity trading at the index level to come.

"We have tried to identify the best franchises, not the most undervalued stocks," Morgan Stanley's research group wrote Wednesday. "The main criterion is sustainability — of competitive advantage, business model, pricing power, cost efficiency, and growth. We selected the companies that scored exceptionally well on these criteria."

The firm called the basket of ideas its "30 for 2021" group, a selection of "quality" stocks to hold over the next three years.

Here are four overweight-rated stocks recommended by Morgan Stanley on the list, along with the firm's current price targets.