UPDATE: Morgan Stanley Starts W.W. Grainger at Overweight, Sets $296 Target

In a report issued Tuesday, May 13th, Morgan Stanley initiated coverage on W.W. Grainger Inc.

with an Overweight rating and a target price of $296. A team of analysts at Morgan Stanley led by Nigel Coe expect W.W. Grainger's best-in-class returns and margins to leave the company as a “levered play on the U.S. manufacturing recovery.” Coe sees the current valuation of the company as an “attractive entry point” with much optimism towards a potential 16 percent return. With Grainger shares last trading at $253.23, down about 0.5 percent from Monday's close, Morgan Stanley's new price target implies potential upside of about 17 percent.