Morgan Stanley names Alpha Bank and PPC as top European stock picks

Morgan Stanley has significantly updated its list of top European stock picks, shifting focus toward companies offering diversification and unique corporate characteristics rather than those directly tied to artificial intelligence investments. The updated list of 'Overweight' recommendations now includes 43 companies, approximately 60% of which were added within the last three months.

Among the selected companies are two Greek entities: Alpha Bank and Public Power Corporation (PPC/DEH). Morgan Stanley highlighted Greece's increasing relevance in the European developed market discussion, noting the country's expected inclusion in STOXX indices this month.

For Alpha Bank, the firm maintains an 'Overweight' rating with a price target of €5.50, representing a potential upside of about 12%. The investment thesis is driven by the resilient growth of the Greek economy, expected increases in loans and deposits, and expanded commission revenues. The bank's recent acquisitions, such as Alpha Trust and Universal/Altius, are projected to contribute approximately €65 million to commission revenues by 2028. Additionally, the upcoming Investor Day on November 5 is viewed as a potential catalyst for the stock.