Based on Morgan Stanley’s EPS estimate, the MSCI emerging market index is trading on a forward P/E of 14.5x, while consensus sees the market as trading on 11.9x, and hence, analysts at Morgan Stanley believe it is very expensive. Jonathan F Garner and colleagues said in their March 31 research note titled “The end of the emerging market equity bear or just a counter-trend move?” that they believe the recent rally will end soon. Emerging market: still the worst area in global equities Garner and team point out that after the recent rally, there is 10% downside to their Base Case Target Price for the…
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