BUZZ-MS sees 'rising tide' for truck makers in 2025, ups Volvo

** Laying out its 2025 outlook, Morgan Stanley says it sees a "rising tide" for truck makers, expecting better freight conditions and emissions regulations to drive upside

** It sees the U.S.-Mexico tariff outcome as a key next catalyst, which will likely determine a choice between investing in Daimler Truck DTGGe.DE or Volvo VOLVb.ST

** MS prefers Daimler Truck on its significant North America exposure, and keeps its "overweight" rating

** Still, it upgrades Volvo to "overweight" from "equal-weight" and hikes PT by almost 20% to SEK 323 as it will benefit from emissions regulations

** "Volvo presents a way to play the emissions story with less volatility post pre-buy and no exposure to potential tariffs, unlike Daimler Truck," MS says

** It lowers its PT on Iveco IVG.MI on overall stock volatility and Traton 8TRA.DE on supply chain risks, but remains "equal weight" on both

(Reporting by Anna Chaberska)

((Anna.chaberska@thomsonreuters.com))