FRANKFURT (dpa-AFX Broker) - Morgan Stanley has taken on the German automobile industry in a current study. After downgrades, the shares of VW and Porsche AG came under pressure on Whit Monday. Meanwhile, shares in Mercedes-Benz were in demand following a recommendation, even though the experts at the US investment bank are now taking a "cautious" stance for the sector overall.

However, Mercedes-Benz is also the top favorite in Europe. Shares in the Stuttgart-based company climbed 1.2 percent above their Xetra close on Friday on the Tradegate trading platform. Mercedes is also suffering from margin pressure, but this has already been priced in to some extent, it was said. In addition, the "aggressive share buyback program" is providing an attractive return on investment.

Experts believe that the market's earnings expectations for Volkswagen and Porsche AG are too high. The dependence on business in China and the limited opportunities to reduce development costs in the face of fast competition are criticized. VW is down around one percent on Tradegate, Porsche AG 1.3 percent./ag/men

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