European Cyclicals Expensive Relative To Broader European Market

European cyclicals are expensive when compared to the wider European market, according to a recent research report from Morgan Stanley. However, Morgan Stanley analysts believe the valuation of European cyclicals appear more reasonable when compared to their global peers. Macros support investors’ interest in cyclicals Graham Secker and team at Morgan Stanley prefer financials over cyclicals, as they believe financials offer more attractive valuations with better EPS leverage into an economic recovery. However,  the analysts point out that a macro backdrop of improving growth data and rising bond yields is generally a positive one for cyclicals and investor interest in…