Morgan Stanley in the machinery industry, promoting stocks Via Investing.com
Investing.com — Morgan Stanley remains bullish on the machinery industry, raising the sector’s rating to “attractive” by 2025, given improved specifications for key machinery cycles.
Brokerage upgraded CNH Industrial NV (NYSE: ), and Timken Company (NYSE: ) to “overweight,” liking these “value” plays for their risk-free profiles. It raises its price target on CNH to $16.5 from $11, while bumping up Timken’s by $11 to $93.
MS said three themes will drive performance in 2025, including the shape of the mission cycle, valuation, and the potential impacts of a Trump presidency. It prefers North American commercial vehicles and agricultural equipment, while construction equipment remains a big challenge.
Morgan Stanley (NYSE:) kept Cummins (NYSE:), Paccar (NASDAQ:), Wabtec, Deere (NYSE:), and Martin Marietta “overweight,” while remaining “underweight” A worm (NYSE:), Terex (NYSE:), Lincoln Electric, and Donaldson.
The note also flagged significant risks and risks associated with a Trump presidency, including trade uncertainty, inflation, and a strong U.S. dollar. However, Morgan Stanley sees equipment rental firms as United Rentals (NYSE:) and WSC also include players Martin Marietta and Vulcan as well-positioned under Trump, given their US-focused sales and pricing power.
