(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. is being touted as a “top pick” by Morgan Stanley after its shares plunged by a record Monday amid the global stock rout.

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“We like TSMC’s quality and defensive nature during an elongated semi downcycle,” Morgan Stanley analysts including Charlie Chan wrote in a note published Monday. The stock is trading at 16 times projected earnings estimates for 2025, a valuation the analysts say is “attractive again.”

The chipmaker rebounded as much as 7.1% in Taiwan on Tuesday following an unprecedented selloff that also dragged on the island’s benchmark Taiex stock index. The benchmark gauge gained as much as 4.1% after tumbling the most in 57 years on Monday.

Morgan Stanley’s price target of 1,220 Taiwan dollars is roughly 50% above Monday’s close of 815.

--With assistance from Charlotte Yang and Matt Turner.

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