UPDATE: Morgan Stanley Raises PT to $40 on Group 1 Automotive

Morgan Stanley raise its price target on Underweight-rated Group 1 Automotive

to $40 on SG&A traction and acquisitions. Morgan Stanley says, "While price normalization and mix headwinds could compress margins, we believe these should be more than offset by SG&A traction, operating leverage, and acquisitions. We raise our 2012 estimates and increase our PT to $40. Expensive valuation and below cons. estimates keep us UW." GPI closed at $53.17 on Monday.