Morgan Stanley Downgrades Daimler, Boosts Volvo’s Outlook

Financial firm Morgan Stanley downgraded Germany-based truck maker Daimler AG, and upgraded Sweden-based truck maker Volvo AB, Bloomberg reported Wednesday.

The firm downgraded Daimler to underweight from overweight, while it upgraded Volvo to overweight from underweight, Bloomberg said. Both are a two-notch changes, with the middle ranking being market weight.

Slowing sales growth may lead to large profit cuts at Daimler, Morgan Stanley analyst Adam Jonas wrote in a note to investors. He cut his price estimate for Daimler shares by 15%, to 63 euros, Bloomberg said.

In boosting Volvo's ranking, Jonas wrote that it was an attractive proposition in the longer term, Bloomberg said.

Daimler is the parent company of U.S. truck maker Daimler Trucks North America, which includes U.S. truck maker Freightliner Trucks.

Volvo is the parent of Volvo Trucks North America and Mack Trucks.