ABB upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded ABB (ABBNY) to Equal Weight from Underweight with a price target of CHF 48, up from CHF 45. The firm sees a “year of two halves” for the European capital goods sector in 2025. The first half’s focus will be on troughing PMIs, but Morgan Stanley stays selective in cyclicals, while the second half will shift into more construction-exposed names, the analyst tells investors in a research note. Into the second half the firm thinks the market will refocus on construction and secular growth names, supported by continued rate cuts. It adjusted ratings as part of its 2025 outlook.