UPDATE: Morgan Stanley Raises Global Payments' PT

According to a research report released this morning, Morgan Stanley has increased Global Payments Inc.'s GPN to $40, reflecting a more positive view on operating fundamentals. In the report, Morgan Stanley commented, “At 13.0x 2012e PE (vs. 10x hist. avg.), however, we believe the stock is fully valued and prefer OW rated PAG. While GPI seems to be executing well, we believe that GPI's relatively higher J3 exposure – while a tailwind in 2012 – could be a headwind in the medium term given uninspiring product lineups and less robust launch schedules vs. a revitalized D3. The stock also seems more in favor and better owned than other dealer stocks raising the bar for positive surprise.” Morgan Stanley maintains its Underweight rating on Global Payments, which closed yesterday at $53.17.