Morgan Stanley Sees Further Upside For United Technologies

In a report published Monday, Morgan Stanley analyst Nigel Coe reiterated an Overweight rating and $129.00 price target on

. In the report, Morgan Stanley noted, “We believe the Goodrich acquisition can deliver $200m further upside to $500m cost targets. UTC's portfolio restructuring is largely complete. We view the company's end market exposures as attractive and our analysis shows that UTC is on the cusp of a best-in-class EPS growth/ volatility performance. We believe Otis can sustain 20%+ margins through 2020 even as the OEM market mixes down. We are comfortable with the expectation for a 2014/15 Commercial Aerospace aftermarket pickup. We believe a valuation premium is warranted, given superior EPS outlook (driven by margin tailwinds).” United Technologies closed on Friday at $116.58.