UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on Computer Sciences Corporation Following Bloomberg Article

In a report published Wednesday, Morgan Stanley analyst Brian Essex reiterated an Underweight rating on Computer Sciences Corporation (NYSE: CSC), but removed the $60.00 price target.In the report, Morgan Stanley noted, “The Bloomberg article indicated that CSC contacted Blackstone and Bain Capital regarding a potential LBO. The company has taken similar action previously, but now there is a new management team. As we've written before, investors are still waiting to see evidence of execution with a number of metrics indicating a declining platform rather than a recovering one. Cash flow yield and low leverage have CSC screening well but a buyout at this point would likely require a potential buyer to reward current investors for execution yet to come. CSC management has not publicly commented on the possibility of an LBO.”Computer Sciences Corporation closed on Tuesday at $61.15.