UPDATE: Morgan Stanley Upgrades HomeAway to Overweight on Revenue per Listing

In a report port published by Morgan Stanley, analyst Scott Devitt upgraded HomeAway

to Overweight and raised the price target from $30 to $36. Morgan Stanley reported that, “Pay-per-booking (PPB) could be a meaningful revenue contributor: We think the launch of PPB this summer will be a significant catalyst for shares. By having a transaction product in its armory, AWAY is better catering to most property managers and short-term rental homeowners. We expect strong adoption of PPB, which is not reflected in our base case or consensus estimates post 2013. Our bull case incorporates an inflection in revenue growth from PPB.” Shares of home away closed at $3.55 on Wednesday.