UPDATE: Morgan Stanley Initiates Regal-Beloit at Equal-Weight

Morgan Stanley initiated coverage on Regal-Beloit RBC with an Equal-weight rating and a $76 price target. Morgan Stanley commented, "We have a positive view on the Resi HVAC market, but RBC is likely to underperform industry growth in the face of lower mix of high-efficiency systems. Moreover, the stock trades at a 4% discount vs. peers, in line with historical norms, following sharp YTD outperformance (+36%)." Regal-Beloit closed at $68.60 on Wednesday.