UPDATE: Morgan Stanley Initiates Ametek at Equal-Weight on Valuation

Morgan Stanley initiated coverage on Ametek

with an Equal-weight and a $38 price target. Morgan Stanley noted, "AME has the makings of a core mid-cap holding – we like its defensive nature, M&A growth story and top-notch management team. Our one hang up is valuation, given that the stock trades at a 32% P/E premium, above its typical 24% level. As such, we await a better entry point." Ametek closed at $33.99 on Wednesday.