Wartsila just downgraded at Morgan Stanley, here’s why

Morgan Stanley double downgraded Wartsila to Underweight from Overweight with a price target of EUR 11.20, down from EUR 12.20. 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.