Analysts from investment bank Morgan Stanley have recommend investors buy shares in “Michelin against Goodyear” following its Alphawise surveys in Europe and the U.S.

Based on current market performance and taking catalysts into the equation, the analysts estimate that “Michelin is 20% above consensus, while for Goodyear we are 15% below the street.”

As a result, Cooper Tire & Rubber Co. shares are described as the firm’s preferred stock in North America, while in Europe, the bankers recommended Michelin and Pirelli over Continental and Nokian.

Here’s how the analysts explained their reasoning: “The survey data bolstered our confidence in industry margins: Inventories are far from overstocked levels, pent-up demand is just being released and price increases are sticking above our expectations. Michelin has a prime market positioning in Europe, and these findings removed the concerns that had informed our previous underweight stance. Our new pricing assumptions were the main driver of our 40%-50% earnings per share upgrade for Michelin.” (Tyres & Accessories)