Paccar downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Paccar (PCAR) to Equal Weight from Overweight with a price target of $96, down from $126. To reflect the “dynamic macro backdrop,” the firm adjusted 2025 machinery and construction estimates lower, moved bear cases to reflect a recession, and make key ratings changes reflective of an updated risk/reward analysis, tariff risk and demand conditions. Respecting that the buy-side in most cases may already be pricing in softer outlooks, Morgan Stanley adjusted stock ratings to better reflect its risk adjusted returns analysis and its perception of market positioning, tariff risk, and overall end-market outlooks, the analyst tells investors in a research note.