UPDATE: Morgan Stanley Reiterates on WABCO Ahead of Earnings Call

In a report published Friday, Morgan Stanley analyst Nicole DeBlase reiterated an Equal-Weight rating on WABCO WBC, but removed the $100.00 price target. In the report, Morgan Stanley noted, “WBC reported 1Q14 Adj. EPS of $1.28 (ex-separation/ streamlining costs), above MSe/cons of $1.25. Upside was driven entirely by a stronger than expected revenue performance, as core incremental margins were actually weaker than expected (likely due to FX headwinds). Adj. FCF conversion was weaker Y/Y at 35% (vs. 65% in 1Q13). Management reiterated previously issued 2014e Adj. EPS guidance of $5.30-5.80.” WABCO closed on Thursday at $108.52.