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7. BorgWarner ( BWA)

Company Profile: BorgWarner is a global supplier of automotive systems and components, mainly for powertrain applications.

Current Share Price: $77.96 (May 11)

Potential Upside: 13% based on a price target of $88

Morgan Stanley's Take: Morgan Stanley analyst Adam Jonas says BorgWarner's secular thesis is still intact, but recent "noise" has forced a cut to estimates for 2011. Jonas highlights concerns from the earthquake and tsunami in Japan, as well as higher costs related to R&D and acquisitions by its drivetrain group.

That said, Jonas estimates that BorgWaner "can double revenues in four years and double earnings in three years," citing global fuel-economy mandates, growth in China and a rebound in commercial-vehicle sales.


6. CBS Corp. ( CBS)

Company Profile: CBS is a mass-media company with operations in entertainment, cable networks, publishing and local broadcasting. Among the assets owned by CBS are Simon & Schuster, Showtime Networks, CBS Television Studios, CNET Networks and CBS Radio.

Current Share Price: $27.30 (May 11)

Potential Upside: 14% based on a price target of $31

Morgan Stanley's Take: Analyst Benjamin Swinburne raised estimates and the price target on CBS after the media company topped first-quarter estimates. Swinburne says CBS is benefitting from cost discipline, strength in advertising and finding new ways to make money off existing content. CBS is also transforming its business toward greater recurring subscription and license fees, Swinburne writes.

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