Latest changes to Morgan Stanley's models

Here are the latest changes to Morgan Stanley's Equity Model Portfolio Solutions.

- US Mid Cap Equity Model

• "Adding a position in Etsy, Inc (ETSY) for its two-sided network effects, attractive valuation given upside from AI, and to reduce the Model's consumer discretionary underweight while increasing average EPS growth;
• Adding a position in CAE Inc. (CAE) for exposure to a leading provider of flight and defense simulators with recurring revenue, potential margin expansion, and exposure to a less cyclical industrial;
• Removing our position in NNN REIT Inc. (NNN) due to slow FFO growth and upcoming debt maturities;
• Removing our position in Coherent Corp. (COHR) due to poor acquisitions and 5G spending that has been lower than our initial expectations."

- Dividend Equity Model

• "Adding a position in Sempra (SRE) to add defensive Utility exposure via a company that has potential catalysts in 2024 that should support long-term earnings potential;
• Removing S&P Global Inc. (SPGI) as our initial thesis predicated on improving sentiment for debt issuance has played out, leaving elevated valuation vulnerable."

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