Morgan Stanley Sees Spansion as Catalyst-Rich Stock

In a report published Monday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating and $19.00 price target on

. In the report, Morgan Stanley noted, “We view CODE as catalyst rich stock, one which is mostly flying under the radar. The steady decline in the NOR flash market and cyclical volatility had cast a shadow over CODE. However, we expect better growth going forward now that the wireless (3% of NOR in 2013, down from 25% in 2010) overhang has run its course. " Since our initiation on January 30, we have become more positive on fundamentals in flash and likelihood for GM upside. As a result, we have increased conviction in our Overweight rating and $19 PT and believe our $27 bull case is becoming more attainable.” Spansion closed on Friday at $16.32.