Morgan Stanley Provides Color on Covidien

Morgan Stanley provided color on Covidien

. In a research report published today, the rating agency stressed its belief that the company's stock will rise relative to the industry in the next few months. In the report, Morgan Stanley states, “We believe the share price will rise relative to the industry over the next 60 days. This is because the stock has traded off recently, making short term valuation much more compelling. We expect the Covidien analyst day in September to provide a catalyst for the stock, including guidance at or above consensus, which should help to close its 14% P/E discount to large cap supply peers… We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.” At the moment, Morgan Stanley has an Overweight rating placed on the company's stock. On Tuesday, COV added 6.78% to its value to finish the day at $47.06. Its shares lost some of yesterday's gains in today's pre-market trading, falling 3.21% to stand around $45.55.