Morgan Stanley has outlined a trio of actionable equity ideas for Asian markets, adjusting ratings on National Australia Bank, COSCO SHIPPING Energy Transportation and Mitsubishi Heavy Industries.
The U.S. bank maintained an underweight rating on National Australia Bank, citing concerns that the lender’s July rally had pushed its valuation into territory that is difficult to justify. Morgan Stanley pointed to an uncertain operating environment and a weak earnings outlook as key risks, suggesting current trading multiples may not reflect underlying fundamentals.
Contrasting with its cautious stance on NAB, Morgan Stanley adopted an overweight rating on COSCO SHIPPING Energy Transportation, a Hong Kong-listed tanker unit. The bank’s contrarian view hinges on its expectation that 2027 could outperform 2026 in the tanker cycle, driven by potential delays in the reopening of the Strait of Hormuz. This would extend favorable market conditions beyond current projections. The overweight call follows COSCO SHIPPING Energy Transportation’s second-quarter results, which showed revenue rising 24% year-over-year to CNY 6.13 billion, while net profit climbed 46% to CNY 1.83 billion.
Morgan Stanley also upgraded Mitsubishi Heavy Industries to overweight, citing strong first-quarter results and upward revisions to earnings forecasts. The bank highlighted the company’s energy business as a key profit driver, along with margin expansion. Mitsubishi Heavy Industries also secured a JPY 378 billion defense contract from Japan’s Ministry of Defense to develop and produce next-generation missile systems, reinforcing its operational momentum.
