UPDATE: Morgan Stanley Reiterates On Spansion On Good Value Proposition

In a report published Wednesday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating on

(NYSE:

), and raised the price target from $19.00 to $20.00. In the report, Morgan Stanley noted, “1H GMs could weigh on the stock, but we would not overreact. After a 50 bp miss to GM in Q1, management appears to be setting a conservative target for Q2, with the low-end of the range down 100 bp q/q a highly unlikely scenario. Also important for context, Q1'14 GMs increased 450bp y/y to 33% despite utilization around 10-15 points lower at 55%, highlighting improving mix in flash, better pricing and the addition of Fujitsu.” Spansion closed on Tuesday at $17.56.