BUZZ-European Capital goods: MS picks stocks to own/avoid for 2018
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** Morgan Stanley (Xetra: 885836 - news) says growth momentum for Capital Goods sector is "solid" for another year, but sees risks from China demand and de-rating
** MS downgrades Atlas Copco (LSE: 0R82.L - news) to "equal-weight" from "overweight", Philips Lighting (Amsterdam: LIGHT.AS - news) to "underweight" from "equal-weight" and upgrades Kion Group AG (IOB: 0QFU.IL - news) to "overweight" from "equal-weight"
** Says power generation market continues to struggle with overcapacity, price declines and headcount reductions in 2018
** Classic auto exposure to be under pressure in 2018, but electric vehicle transition players could start seeing demand momentum, adds MS
** Top six stocks to own: Alfa Laval (LSE: 0NNF.L - news) , GEA Group (IOB: 0MPJ.IL - news) , Kion Group, Kone Oyj (LSE: 0II2.L - news) , Rotork (Frankfurt: RO41.F - news) , Siemens; top four stocks to avoid are Bodycote , Osram Licht (IOB: 0QFR.IL - news) , Philips Lighting, SKF - MS analyst (Reporting by Jasmine I S)