$Amazon(AMZN.US) - MORGAN STANLEY NAMES AMAZON TOP PICK ON GROCERY PUSHMorgan Stanley added Amazon as a top pick, citing its move into the $600 billion fresh grocery market as a major growth driver. The bank estimates every 1% market share could add 120 basis points to U.S. gross merchandise volume.Amazon has prepared for a 2,300-city rollout by adding cold storage to fulfillment centers and leveraging physical stores. Morgan Stanley said profitability concerns are mitigated by a $25 order minimum, higher margins on fresh goods, and larger basket sizes.The firm believes Amazon’s grocery expansion can generate incremental profit while boosting network efficiency.

Amazon

Morgan Stanley

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY NON-CUM DEP SH REP 1/1000 PFD SER I

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY DEP SHS EA REP 1/1000 SHS NON CUM PFD O

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

Walter Bloomberg