Morgan Stanley Sees Possible Upside Source for Endo International PLC

In a report published Thursday, Morgan Stanley analyst Christopher Caponetti reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Mgmt's full-yr guidance of 164M shares was based upon an $80 avg. price, but Endo's stock is now closer to $60. At $60, Endo's convertible notes and warrants are less dilutive (11M vs. 15M at $80). Based upon an avg. share price of ~$70, we now est. 144M fully diluted shares (vs. 150M prev.) in 1Q:14A. Assuming an avg. price in the mid-$60s for the remainder of the year, we now est. 161M shares in 2014E vs. 164M prev, but greater stock appreciation could yield more shares.” Endo International PLC closed on Wednesday at $61.90.