Morgan Stanley Maintains Overweight on Healthsouth

Morgan Stanley is out with its report today on Healthsouth

, maintaining Overweight. In its report, Morgan Stanley writes, "HLS has significantly outperformed volume expectations in recent quarters, supporting our thesis that strong volume growth should allow HLS to leverage its industry high margins and drive outperformance. Overall, we like the fundamental trends, deleveraging opportunity given free cash flow (~11% FCF yield), and management team." Morgan Stanley has a $23 PT on HLS. Shares of HLS closed Tuesday at $16.90, down 4.30% from Monday's close.