The asset allocation team at Morgan Stanley is currently overweight on emerging markets, stating that it is their most-favored asset class because: "These countries continue to lead the global economic recovery. They generally have cleaner government balance sheets, their equity market valuations are attractive and many of their currencies are likely to appreciate." While this year's performance doesn't necessarily line stocks in the region up to be 2011's top performers, many of these names are highly favored by analysts to continue their upward trajectory. Small jet builder Embraer ( ERJ) rose almot 37% for the past 12 months and the company continues to deliver positive guidance. Credit Suisse analyst Luiz Campos gives the stock an outperform rating with a target price of $37.00. Campos thinks the company has become more efficient and less labor intensive. While he points to sales being 3% below his estimates, the net income was 107% above his estimate. Campos also wrote, "further upward revision of Ebit
In a Nov. 13 research note, Yordan wrote: "We also believe that AmBev will continue to sharply increase its dividend payout over the next 12 months." Yordan sees some risk from increased competition or currency fluctuations, but it's not enough to change his long term positive view. HSBC analyst Lauren Torres also gives AmBev an overweight rating and raised her target price from $169 from $147. She sees continued momentum going into 2011.
Itau Securities analyst Paula Kovarsky has a market perform rating on the stock and a 12-month price target of $17.40. Cosan has also formalized a $12 billion joint venture between it and Shell ( RDS), signaling energy potential in the future. --Written by Debra Borchardt in New York. >To contact the writer of this article, click here: Debra Borchardt. >To follow the writer on Twitter, go to http://twitter.com/wallandbroad. >To submit a news tip, send an email to: email@example.com.