UPDATE: Morgan Stanley Reiterates On Advance Auto Parts As Integration Is On Track

In a report published Thursday, Morgan Stanley analyst Simeon Gutman reiterated an Overweight rating on Advance Auto Parts AAP, but removed the $150.00 price target. In the report, Morgan Stanley noted, “The combination of deal synergies, a greater DIFM mix and the harnessing of WORLDPAC should elevate AAP's growth rate over the next few years. We see EPS potential of $11+ by 2016, significantly higher than what the market expects. This is based on synergy achievement of $300+ million, more than double the targeted amount. Though a synergy raise was not likely (and the market seemed to appreciate this heading into the meeting), the stock's ~2% pullback yesterday implied that the event left something to be desired. Other than high expectations, nothing we heard sounded different or less optimistic than before.” Advance Auto Parts closed on Wednesday at $129.85.