Morgan Stanley Maintains Equal-Weight on FleetCor Technologies (FLT)

Morgan Stanley is out with its report today on FleetCor Technologies FLT, maintaining Equal-weight. In a note to clients, Morgan Stanley writes, "We view 1Q results as another step in the right direction for management in building its public track record. Fuel price spreads were less onerous this quarter (and offset by overall fuel prices), which demonstrates the flexibility of the model and multiple revenue levers at work. The lack of a guidance raise will likely be the main point for the bears, though we would not get too hung up here as the business metrics are moving in a positive direction, and we acknowledge FLT's exposure to the (still recovering) economy. As sentiment will be driven in large part by new deals and acquisitions, we found management's positive commentary here (suggesting we will see some news in 2H) worth noting. That said, we remain Equal-weight as we believe the current valuation appropriately reflects FLT's success in this regard." Shares of FLT closed Thursday at $33.61, up 0.66% from Wednesday's close.