(Jan 16): Morgan Stanley is joining a growing chorus of brokerages in upgrading their ratings on GoTo Group as its share price starts to recover, reflecting views that risks appear reasonably priced into current valuations.

The recent plunge in GoTo has brought multiples down to reflect risks to the group’s revenue base and profitability, and GoTo “now deserves this premium for its faster 2021-24e revenue” growth annually of 68% versus peers at 42%, said Morgan Stanley. The broker upgraded the Indonesian ride-hailing and e-commerce provider to equal-weight from underweight.