Morgan Stanley's names Tesco as top European retail pick, upgrades Sainsbury

Morgan Stanley (NYSE:MS) has made Tesco PLC its top pick in European Retail in a wide-ranging note that includes an upgrade for J Sainsbury PLC (LSE:SBRY) but downgrades for H&M, Primark-owner, AB Foods and Kingfisher. The investment bank said its thesis for the year ahead is simple.  As price inflation moderates across geographies, top line growth will become increasingly reliant on volumes.  “We expect retailers who are in the sweet spot to be rewarded by the market, as volume-led top line growth should c ...