UPDATE: Morgan Stanley Initiates Coverage on Heartland Payment Systems with Equal-Weight Rating on Fair Valuation

In a report published Wednesday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on

with an Equal-Weight rating. In the report, Morgan Stanley noted, “HPY looks well positioned against competitors by virtue of its differentiated business model (direct sales force and transparent pricing), along with new training and cross-selling initiatives that should limit the risk of losing some small merchants to new entrants in the merchant acquiring space. However, we believe the stock is currently fairly value, trading at 16.4x 2014e EPS.” Heartland Payment Systems closed on Tuesday at $35.62.