Morgan Stanley upgrades South Korean equities to an “overweight” rating after what it describes as a recent “leverage washout,” which it says has improved the entry point for investors. The firm estimates the potential upside for Korean stocks at about 36%, according to the reports.
In its view, the pullback and deleveraging create a more attractive risk-reward setup for exposure to themes that are central to its outlook. Specifically, Morgan Stanley links the opportunity to the artificial intelligence trade and to a broader industrial “super-cycle,” arguing that these longer-term drivers remain relevant even after the selloff.
Both outlets report the same rating change and the same rationale, describing the upgrade as a response to market conditions rather than a shift away from the underlying growth narrative. The coverage does not introduce additional new company-specific developments or detailed valuation measures, focusing instead on the timing of the upgrade and the firm’s broader thematic framework.
