Morgan Stanley: U.S. stock automotive sector is "attractive", with Ford Motor as the top choice.

Zhitong App learned that on Wednesday, Morgan Stanley analysts upgraded their investment rating on the US automotive sector from "in line with the market" to "attractive." They stated that traditional fuel vehicle manufacturers and their suppliers are ready to bring returns to shareholders. In a report on March 13th, Morgan Stanley analyst Adam Jonas stated, "After years of peak spending on electric and autonomous vehicles, automakers are shifting towards capital efficiency and returns." "In the past few months, we have seen strong support for our internal combustion engine extension theory from automotive demand trends, while traditional original equipment manufacturers' management teams have largely embraced our capital discipline and cash return theory." Morgan Stanley believes that automotive stocks are expected to rise by an average of 10%, excluding a potential 7% increase for electric vehicle pioneer Tesla (TSLA.US). Morgan Stanley forecasts that with declining new car prices, the seasonally adjusted annualized sales volume in the US this year could reach 16 million units. Morgan Stanley stated, "Without a doubt, our strongest belief in the global automotive industry is the opportunity to significantly improve capital efficiency." Ford Motor (F.US) is Morgan Stanley's preferred stock among US automakers, "because it has the opportunity to achieve capital discipline and shareholder returns." Morgan Stanley has set a target price of $16 per share for Ford Motor, with a potential upside of 32%. On Wednesday, Ford Motor's stock price surged by 3.1%, while the S&P 500 index traded in a narrow range. Morgan Stanley has a "hold" rating on the following automotive-related stocks: Ford Motor, Tesla, Ferrari (RACE.US), BorgWarner (BWA.US), General Motors (GM.US), CarMax (KMX.US), American Axle & Mfg (AXL.US), Avis Budget Group (CAR.US), Magna International (MGA.US), Phinia (PHIN.US), Harley-Davidson (HOG.US), Rivian Automotive (RIVN.US).