Morgan Stanley Opens Research Tactical Idea on BorgWarner

Morgan Stanley has opened a research tactical idea on BorgWarner BWA believing that the stock value will rise over the next 15 days. In the report, Morgan Stanley writes, "This is because the stock has traded off recently, making short term valuation much more compelling. We believe the sell-off today in reaction to the backlog number is overdone. BWA's $2.5 bn 2012-14 backlog came in at the high-end of our expectations. The 9% y/y growth is consistent with past years when adjusted for the big bounce in 2010 coming off a low base in 2009. We expect consensus numbers will come up for 2012 and 2013. Management is presenting at a conference at 3.05 PM today." Morgan Stanley maintains its Overweight rating on BorgWarner, which is currently trading down $3.56 from yesterday's $74.58 closing price.