Morgan Stanley's commodities team updates forecasts and suggests investors focus on stocks with exposure to commodities that will benefit from lower interest rates and either supply discipline or supply disruptions.

The analysts see room for a bounce in iron ore prices and believe lithium share price valuations have potential to correct further.

The Equal-weight rating is retained for Syrah Resources and the target rises 45c from 39c. Industry view: Attractive.

Sector: Materials.

Target price is $0.40.Current Price is $0.50. Difference: ($0.10) - (brackets indicate current price is over target). If SYR meets the Morgan Stanley target it will return approximately -24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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