UPDATE: Morgan Stanley Initiates Intermolecular at Overweight

Morgan Stanley has published a report today initiating coverage on Intermolecular IMI with an Overweight rating and $14 price target. In the report, Morgan Stanley writes, "IMI's business model enables competitive advantage for semi device makers by improving ROI on R&D spend and accelerating product introduction. IMI model successfully generates high margin licensing revenues longer-term through Collaborative Development Plans (CDPs). We model revenue CAGR of +30% in the next five years. Stock appears attractively valued with a favorable risk-reward 12-18 months out." Intermolecular is currently trading up $0.24 from yesterday's $8.82 closing price.