Aalberts just upgraded at Morgan Stanley, here’s why

Morgan Stanley analyst Aurelio Calderon Tejedor upgraded Aalberts to Overweight from Equal Weight with a price target of EUR 45, up from EUR 42. The analyst says the “Great Unwind” has largely played out for European capital goods. Bloated backlog and legacy pricing are being worked through and 2024 will be a transition to a more typical, low growth environment for industrial cyclicals, he analyst tells investors in a research note. The firm is positive for the first time on short-cycle stabilization, saying the downside risk is on project capex.