Morgan Stanley Releases Morning Summary Report (RIMM) (GWR)
Morgan Stanley released their morning research summary for Friday, with Research in Motion (NASDAQ: RIMM), Genesee & Wyoming (NYSE: GWR), and the topic of tablets vs. notebook computers chief among the subjects.
Research in Motion saw an Underweight rating maintained by Morgan Stanley, despite stronger-than-expected second quarter resorts, due to stiff smartphone competition for the holiday season. It said that it was not optimistic on sell-through on their new product offerings for that time frame.
After a meeting with Genesee & Wyoming, Morgan Stanley believes that freight transportation stocks are Attractive, due to positive volume and operating ratio trends, a potential short-line tax credit, and Genesee & Wyoming's acquisition of FreightLink, which is expected to be a strong platform for organic growth.
Finally, U.S. notebook growth fell 4% year to year in August, with Morgan Stanley believing that tablet computers are putting further pressure on the PC market. New machines on the market, such as the Dell (NASDAQ: DELL) Streak and Samsung Tab, as well as increased iPad distribution by Apple (NASDAQ: AAPL), will keep the pressure on. Morgan Stanley rates the systems and PC hardware market in general as Attractive.
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