Morgan Stanley raises its outlook on autos and auto-related stocks to attractive from in-line, noting that market expectations and share prices "have fallen sufficiently" to offer a significantly improved next 12-month risk-reward outlook.
The investment bank says four factors drive its upgrade: seasonally adjusted US expectations have fallen sharply; fears of Japanese price war are overdone; fears of mix deterioration are overdone; and poor stock performance reflects significantly lower sentiment.
General Motors replaces Ford as firm's 'top pick.' GM climbs 1.2% to $31.24 premarket. Ford is indicated modestly higher.view original article