Morgan Stanley upgrades Volvo to Overweight and raises its target price to SEK 323 from SEK 271 and predicts that 2025 will be a year of improved conditions for the truck industry. However, the bank's top pick in the sector remains Daimler Truck.

The bank sees a positive wave for the industry based on improved freight conditions and new opportunities linked to upcoming emissions regulations.

Analyst Shaqeal Kirunda sees Volvo as a stable option for investors who want to avoid risks related to tariffs, Bloomberg News writes.

Morgan Stanley believes that Daimler Truck is best placed to benefit from upcoming emissions regulations due to its exposure to North America, which generates 70 percent of operating profit. The target price for Daimler is raised to 48 euros from 44 euros previously.

One caveat is potential US/Mexico tariffs that could throw a wrench in the works.

For players such as Iveco and Traton, Morgan Stanley maintains its Equal Weight recommendation.