Morgan Stanley overweight rating: Global brokerage firm Morgan Stanley has given its positive stance on several Indian companies across technology, financial services, consumer goods and metals, maintaining its 'Overweight' ratings and setting fresh target prices while highlighting strong growth prospects and improving operational performance.

Morgan Stanley's top stock picks: 'Overweight' rating for these 9 stocks

Brokerage firm Morgan Stanley has given 'overweight' ratings for these nine stocks - Pine Labs Ltd, Mphasis Ltd, Tata Consultancy Services (TCS), Tata Consumer Products, HDFC Asset Management, HDFC Life Insurance Company, JSW Steel, Hindalco Industries and Jindal Steel.

1. Morgan Stanley on Pine Labs Share Price

Maintain Overweight
Maintain Target Price at Rs 186

Morgan Stanley maintained its 'Overweight' rating on Pine Labs with a target price of Rs 186.

The brokerage maintained that management has reiterated its revenue growth outlook with flow and transaction services expected to grow 25-30 per cent, prepaid and issuing at 25 per cent and in-store payments to grow 13-15 per cent.

The brokerage said the company's international business which is at around 15 per cent of total revenues is growing at 40 per cent year on year. It further said the affordability segment is expanding into non-electronics categories and seen growing 60 per cent year on year from a small base.

Morgan Stanley highlighted a 500-basis-point expansion in adjusted EBITDA margins and a cash balance of Rs 24.5 billion as of Q4FY26. It also noted strengthening competitive moats in offline payments as several new entrants exit the market due to unsustainable economics.

Incremental EBITDA margin is seen at 55 per cent of incremental contribution profit, it added.

2. Morgan Stanley on Mphasis Share Price

Maintain Overweight
Maintain Target Price at Rs 2,730

Morgan Stanley retained its overweight recommendation on Mphasis, maintaining a target price of Rs Rs 2,730.

The management reiterated FY27 revenue growth guidance in the high-single to low-double-digit range, based on deals won in FY26 and strong pipeline.

The brokerage further noted that banking, financial service and insurance and insurance verticals remain on strong footing; while temporary softness in technology, media and telecom is expected to normalise over time.

It further said the company's logistics and other verticals is expected to improve gradually. Client concerns around captive technology centres are being addressed and scaling of captive centres has not changed client relationships. The brokerage also highlighted Mphasis Ltd's AI-led transformation platform Tria repositions the company toward outcome-based enterprise transformation.

3. Morgan Stanley on TCS Share Price

Maintain Overweight
Maintain target price at Rs 2,880

Morgan Stanley maintained an 'Overweight' rating on Tata Consultancy Services with a target price of Rs 2,880.

According to the brokerage, decision-making slowdowns that began in March 2026 have continued into the first quarter of FY27 across industries and geographies. However, the company reported no client-specific concerns.

The brokerage noted that TCS has started its wage hike cycle from April 2026, which could potentially impact margins by 150-200 basis points. Management expects to recover the margin impact over the course of the year through operational efficiencies.

Morgan Stanley also highlighted the company's efforts to build strategic partnerships and centres of excellence with AI model developers while noting increasing client demand for productivity gains driven by artificial intelligence.

Hypervault data centre business secured anchor customer and is expected to generate high-teens returns on investment without being dilutive to consolidated return ratios.

4. Morgan Stanley on Tata Consumer Products Share Price

Maintain Overweight
Maintain target price at Rs 1,351

Morgan Stanley maintained its Overweight rating on Tata Consumer Products with a target price of Rs 1,351.

The global brokerage said management has reiterated its medium-term targets of delivering double-digit revenue growth and faster profit growth. Core tea and salt businesses are expected to achieve mid-to-high single-digit revenue growth, while newer growth businesses are targeting approximately 30 per cent growth.

The company remains optimistic about the future of Capital Foods and Organic India despite softer FY26 growth due to weak export demand. Morgan Stanley also highlighted strong momentum in the Sampann brand, which has delivered 40-69 per cent growth in recent quarters, supported by dry fruits and cold-pressed oils.

It further said the tea commodity prices are expected to remain benign while overall commodity basket is seen as balanced.

5. Morgan Stanley on HDFC Asset Management Company (AMC) Share Price

Maintain Overweight
Maintain target price at Rs 2,975

Morgan Stanley maintained 'Overweight' stance on HDFC Asset Management Company (AMC) with a target price of Rs 2,975.

While some softness in flows was observed in May compared with March and April, the brokerage noted that the impact of new total expense ratio norms has largely been neutralised through commission rationalisation and cost optimisation initiatives.

The brokerage also highlighted the successful closure of the company's first private credit fund, backed by anchor investor International Finance Corporation, along with the launch of two new GIFT City funds.

Specialised investment fund approval received from regulator while the initial product offerings are expected to be simplified in nature.

6. Morgan Stanley on HDFC Life Share Price

Maintain Overweight
Maintain target price at Rs 745

Morgan Stanley maintained an Overweight rating on HDFC Life Insurance with a target price of Rs 745.

The brokerage noted improving traction in non-participating savings products driven by enhanced offerings and rising customer demand. It also expects the newly launched AGNI variable annuity product to support premium growth in FY27 while delivering better margins than the overall business.

Morgan Stanley further believes that the transition to IFRS accounting standards could foster more disciplined industry practices and reduce competitive intensity.

7. Morgan Stanley on JSW Steel Share Price

Maintain Overweight
Maintain target price at Rs 1,330

Morgan Stanley has put forth its positive stance on major steel producers, maintaining 'Overweight' ratings on both JSW Steel and Jindal Steel and Power.

For JSW Steel, the brokerage maintained a target price of Rs 1,330 and has targeted 50 million tonnes by 2030 of domestic crude steel capacity by 2030 and further expanding to 62 million tonnes by FY32. The company expects captive resources to meet around half of its coking coal and iron ore requirements by the end of the decade.

Brokerage said the EBITDA per tonne maintained in range of Rs 11,000 - Rs 12,000. The company is confident of sustaining this supported by efficiency gains.

"Capex guidance of around INR 2.3 trillion by FY33 reiterated, The majority to be funded by internal accruals. The net debt to EBITDA target below 3 times," it added.