UPDATE: Morgan Stanley Reiterates on 51job on Rich Valuation

In a report published Friday, Morgan Stanley analyst Philip Wan reiterated an Underweight rating on

, and raised the price target from $62.90 to $70.20. In the report, Morgan Stanley noted, “Our UW rating is due mainly to rich valuation and to indicate our relative preference in the industry. We remain positive about 51job's market position and the outlook for China's online recruiting market. We believe, 51job, a leading online recruitment player in China with a ~40% market share, will continue to benefit from the online recruiting market expansion in China. Its penetration into other HR services (i.e., outsourcing and training) should lead to further upside, as <3% of 51job's online customers have purchased other HR services, implying cross-selling opportunities.” 51job closed on Thursday at $83.69.