** Morgan Stanley upgrades specialty vehicles manufacturer Rev Group REVG.N to "equal weight" from "underweight" rating

** Brokerage sees a less dire price-cost scenario within REVG's specialty vehicles business

** Morgan Stanley adds the company's ongoing efficiency initiatives to result in manufacturing throughput and operating margin improvements

** "REVG is somewhat shielded in its specialty business, given the vast majority of its fire and emergency vehicle business is driven by muni spending, where budgets have already been locked in for 2025" - Morgan Stanley

** Brokerage raises PT to $46 from $33, a ~5.6% upside on stock's last close

** As of last close, stock up ~36.7% YTD

(Reporting by Prakhar Srivastava in Bengaluru)

((Prakhar.srivastava2@thomsonreuters.com))