Morgan Stanley on Friday upgraded Russian stocks to overweight, arguing that valuations for the country's equities are so low that a solid rally is on the cards. "With global markets looking oversold and Russia at new lows for the year, we think the tactical risk-reward has improved," the analysts said in a note. They gave three reasons for the overweight stance: 1) The Ukraine crisis has stabilized in recent weeks, 2) oil prices should bottom out soon and help lift the energy companies and 3) valuations are low, so Russian stocks could rally 15%-20%. Russia's MICEX index jumped 1.7% on Friday to 1,383.93.
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