Morgan Stanley published a new analysis of Japan’s tire industry, reaffirming Overweight (OW) ratings on two major companies with solid growth prospects despite differing market pressures. The report highlights firms well positioned to benefit from opportunities in North America while navigating sector-specific challenges.
1. Toyo Tire — Morgan Stanley reiterates its Overweight rating on Toyo, pointing to growing confidence in the company’s growth strategy and shareholder return outlook ahead of its Medium-Term Plan announcement on March 4. Analysts see additional upside as investors continue to factor in stronger demand for WLTR (Wide Light Truck Radial) tires in North America, where Toyo holds a well-established market position.
2. Bridgestone — Bridgestone also retains an Overweight rating, supported by initiatives to reinvigorate the Firestone brand in the North American market. Morgan Stanley highlights encouraging expectations from the company’s restructuring efforts, while cautioning that soft OE (Original Equipment) demand for TBR (Truck and Bus Radial) tires in North and South America presents a downside risk. Nonetheless, replacement demand in these regions remains resilient.
Sources: Investing
THE ETERNAL SOVEREIGN 
Leave a comment