UPDATE: Morgan Stanley Initiates Coverage on Bruker Corporation with Overweight Rating, $23 PT Ahead of Expected Margin Expansion

In a report published Wednesday, Morgan Stanley analyst Daniel Brennan initiated coverage on

with an Overweight rating and $23.00 price target. In the report, Morgan Stanley noted, “BRKR has a strong, technology oriented, analytical instrument franchise where mgmt historically focused almost exclusively on top line growth (less regard for margins and FCF). With significant new management hires/structure & incentives, we expect the company to execute on driving significant margin expansion and balance sheet/cash flow efficiency improvement. After growing ~8% CAGR over the past 5 years (14% past 7), BRKR is now focused on generating consistent profitable growth. With more disciplined investment and capital allocation, we expect revenue CAGR of 4-8% CAGR, still superior to peers.” Bruker Corporation closed on Tuesday at $18.56.