Morgan Stanley slashes DP World price target

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Morgan Stanley slashed its price target on Dubai-based port operator DP World by 59 percent, saying the market is underestimating the depth and duration of the container port downturn, particularly in the Middle East.

"Also, given that the UAE economy has slowed later than the rest of the world, we think the destocking phase, and hence recovery in volumes at Jebel Ali, will lag global ports," Morgan Stanley said.

A recovery in the global economy may be imminent but is likely to be "tenuous and slow", according to Morgan Stanley's economics team.