Morgan Stanley
Hiroto Segawa
Overweight -> Equal Weight
downgrade
Reason
Morgan Stanley analyst Hiroto Segawa downgraded Honda to Equal Weight from Overweight with a price target of 1,600 yen, down from 2,000 yen. The firm recommends "selective stock-picking" in Japan's auto and mobility group, saying industry headwinds are picking up amid rising raw material costs and emerging geopolitical risk. For Honda, the analyst we thinks the re-evaluation of its automobile business will take time. Suzuki remains Morgan Stanley's Top Pick.
