Morgan Stanley Reiterates Overweight on United Technologies, $121.00 PT

In a report published Thursday, Morgan Stanley analyst Nigel Coe reiterated Overweight on United Technologies Corp.

, with a price target of $121.00. According to the report, the analysts expect no drama with in-line 4Q and FY14e reiteration. A conservative EPS set-up, attractive end markets through 2016 and discounted valuation sets the stock up well into 2014. “We expect an inline quarter, with a $1.52 EPS estimate, a penny below consensus of $1.53,” the report noted. “We see little change to management's assumptions from the Dec Analyst Day, which is largely supportive of accelerating organic growth across the board. We see 6% and 4% org. growth at Otis and CCS, respectively. At Otis, we see Equipment sales outpacing Service, consistent with past quarters, which puts modest pressure on margins. Importantly, China E&E orders should continue to remain strong. On the Aero side, we believe moderating military declines and stable aftermarket trends should combine to drive Q/Q improvement at both Aerospace segments, though we see some risk to our ~10% organic growth estimate at UTAS.” UTX closed Wednesday at $114.07 with shares trading up at 1.28 percent.