** Laying out its 2025 outlook, Morgan Stanley says it sees a "rising tide" for truck makers, expecting better freight conditions and emissions regulations to drive upside
** It sees the U.S.-Mexico tariff outcome as a key next catalyst, which will likely determine a choice between investing in Daimler Truck DTGGe.DE or Volvo VOLVb.ST
** MS prefers Daimler Truck on its significant North America exposure, and keeps its "overweight" rating
** Still, it upgrades Volvo to "overweight" from "equal-weight" and hikes PT by almost 20% to SEK 323 as it will benefit from emissions regulations
** "Volvo presents a way to play the emissions story with less volatility post pre-buy and no exposure to potential tariffs, unlike Daimler Truck," MS says
** It lowers its PT on Iveco IVG.MI on overall stock volatility and Traton 8TRA.DE on supply chain risks, but remains "equal weight" on both
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
Volvo | Overweight | Equal weight | SEK 323 | SEK 271 |
Daimler Truck | n/a | Overweight | EUR 48 | EUR 44 |
Traton | n/a | Equal weight | EUR 32 | EUR 34 |
Iveco | n/a | Equal weight | EUR 12.5 | EUR 14 |
(Reporting by Anna Chaberska)
((Anna.chaberska@thomsonreuters.com))
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