UPDATE: Morgan Stanley Initiates Coverage on Lowe's

In a note released Tuesday morning, Morgan Stanley analyst, Simeon Gutman initiated coverage on Lowe's Companies Inc. (NYSE: LOW) with an Equal-weight rating and a $50 price target.Gutman began by noting Lowe's is a "reasonable" way to get in on futher gains in the housing sector. He continued by stating the company's ability to achieve, and perhaps surpass, a 10 percent EBIT margin should mean an EPS growth rate in the high teen to low twenties over the next few years.Despite the company's favorable outlook for earnings and margins, Gutman noted the consensus already reflect this and cautioned that there may be little upside to his $50 price target.