Morgan Stanley sees the S&P 500 rising 9% next year with the ‘average’ stock doing even better

The headquarters of Morgan Stanley in New York.
Shannon Stapleton | Reuters

(This story is for CNBC Pro subscribers only).

The stock market is on track for a solid gain by the end of 2021, but smart stock pickers have a prime opportunity to bring in an even larger haul, according to Morgan Stanley.

Morgan Stanley strategists, led by chief investment officer Mike Wilson, set their S&P 500 target for the end of 2021 at 3,900, a roughly 9% increase from current levels. The firm said in a note on Monday that it also expects the average stock to outperform the index over that time period.