Morgan Stanley adjusts its list of core overweight European stocks, adding 15 new names.

Morgan Stanley's strategist team has made an unusually large adjustment to its high-conviction stock list, advising investors to broaden their positioning in European portfolios rather than confining themselves to market hot themes such as AI capital expenditure and defense. The research team led by Marina Zavolock recommends adopting a diversified allocation strategy rather than abandoning the AI investment thesis. Since late August, the team has added 15 new overweight top picks, whereas the list typically adds only 3 to 4 per month; there are currently 43 overweight top picks, 60% of which were added in the past three months. The new additions span the banking and financial sectors, including ABN AMRO, Lloyds Banking Group, Arden, and EQT; companies with idiosyncratic stock-specific theses such as Accor, Shell, and Scout24; and companies benefiting from AI and data center development, such as Legrand, Kingspan, and Merlin Properties.