UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on Meritor on Multiple Positive Factors

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In a report published Wednesday, Morgan Stanley analyst Ravi Shanker reiterated an Overweight rating on
MeritorMTOR
, and raised the price target from $12.00 to $15.00. In the report, Morgan Stanley noted, “We believe MTOR can hit its 10% target for FY16, if macro, esp. in emerging markets co-operate. Modeling in this higher level of confidence takes our FY14 EPS to $0.55 and FY16 to $1.45 and our PT to $15. MTOR trades at 6.5x FY15 EV/EBITDA vs. CV peers at >7x and 10x normalized EPS of around $1.50. At the current price, we do not believe the stock even fully prices in the fundamental story, let alone any potential upside from the litigation outcome.” Meritor closed on Tuesday at $13.96.
Posted In: Analyst ColorPrice TargetAnalyst RatingsMorgan StanleyRavi Shanker
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