Investment bank Goldman Sachs has raised its rating on truck maker Volvo, from 'neutral' to 'buy'.

The bank's analysts said in a research note that Volvo's shares now represented an investment opportunity.

The broker said concerns over the impact of an expected decline in the US truck market in 2007 had depressed Volvo's valuation, which now more than discounted the prospective downturn and offered an investment opportunity.

Goldman Sachs has a price target of 450 Swedish crowns on Volvo.

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