Morgan Stanley's Positive Stance Follows Full Truck Alliance's (YMM) Approval of Capital Return Plan

Full Truck Alliance Co. Ltd. (NYSE:YMM) is one of the Best Tech Stocks Under $10 to Buy, with an Overweight rating from Morgan Stanley, which was reiterated on January 20 with a $14 price target. The analyst projected sustained 30% year-over-year growth in YMM’s transaction commission revenue in 2026, along with 13-17% order volume growth.

Morgan Stanley’s assessment of Full Truck Alliance Co. Ltd. (NYSE:YMM) follows the company’s January 19 approval of a long-term plan to return capital to shareholders through dividends and share repurchases, beginning with a total of $400 million for fiscal year 2026. The plan entails a capital return of 50% of its non-GAAP adjusted net income from the prior fiscal year each year.

Before this approval, on January 13, JPMorgan downgraded the company’s stock from Neutral to Underweight and lowered the price target to $8.00 from $11.00. The analyst noted the lack of growth or margin improvement for the company despite its international expansion efforts.

Full Truck Alliance Co. Ltd. (NYSE:YMM) creates and operates mobile and website platforms that offer comprehensive services that connect shippers and truckers to facilitate shipments across distance ranges, cargo weights, and types.

While we acknowledge the potential of YMM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.