< The 2014 All-Europe Research Team

Michael Jüngling & team
Morgan Stanley
First-place appearances: 3

Total appearances: 5

Team debut: 2003

Although Morgan Stanley’s three-year run at the top is ending, the No. 2 team still garners investor praise for exhibiting “broadness of coverage, clear investment theses, deep knowledge of the sector and openness to discussion with investors of differing opinion,” in the words of one money manager. New York–based Michael Jüngling guides his two-person team in London in reporting on 14 stocks. Denmark’s GN Store Nord, a manufacturer of diagnostic audiology equipment, headsets and hearing instruments, is the researchers’ top pick. They credit the company’s new product cycle, which includes a hearing aid called LiNX that is designed to work with the iPhone. “It is the first push by a hearing aid company, in my view, to turn a hearing aid into a lifestyle device by connecting it to smartphone technology,” says Jüngling. “GN has a head start, and we believe it can take good market share over the next two years.” More broadly, the team recommends overweighting the sector this year, partly driven by valuation. Though the group’s shares advanced by 12.2 percent last year, they trailed the broad market by 5.9 percentage points. “At 1.5 times the European market,” notes Jüngling, “medtech is trading at close to ten-year lows — excluding the financial meltdown of 2009 — despite a stable operating environment.”