Morgan Stanley named a raft of Eu shares with robust stability sheets, a lot of coins or prime shareholder returns. The locker mentioned the fresh quarterly effects confirmed a slowdown in earnings, profits and coins current “as companies brace for higher interest rates and a less certain macro environment,” however it recognized a number of that seem to be bucking the craze in a analysis observe clear via CNBC on Wednesday. The locker analyzed greater than 400 firms that business at the MSCI Europe index to build a number of conserve monitors. On an inventory of shares with robust stability sheets, Morgan Stanley incorporated outlets Later , H & M and JD Sports activities , in addition to pharmaceutical company Sanofi and biotech corporate Genmab . It additionally named aerospace firms Airbus and MTU Aero Engines , instrument corporate SAP and semiconductor company STMicroelectronics . “We searched for companies with strong balance sheets and sufficient liquidity that are generating a return over their cost of capital,” the locker said. The locker mentioned those companies even have an anticipated distant coins current enlargement of greater than 5% over the after two years. Prime coins current and shareholder returns The locker additionally screened for firms with “resilient high free cash flow.” “Self-financing companies should be better able to weather any prolonged macroeconomic weakness, deploying capital effectively and seizing opportunities that come along the way,” Morgan Stanley mentioned. Its listing incorporated oil firms BP and TotalEnergies and utilities company Centrica , in addition to promoting teams WPP and Publicis Groupe . Additionally at the listing are automaker Stellantis and metal provider Tenaris . “Cash-rich companies with high free cash flow yields should also have better downside protection, while providing upside potential if management is able to deploy its cash effectively,” the locker mentioned. Morgan Stanley additionally screened for shares with the absolute best general shareholder returns, naming InterContinental Lodges , fabrics corporate Holcim , type company Burberry and jewellery trade Pandora amongst its choices. The ones companies even have “positive free cash flow and net income growth expected over the next 2 years,” the locker mentioned. — CNBC’s Michael Bloom contributed to this file.