UPDATE: Morgan Stanley Initiates Coverage On Orion Engineered Carbons SARL As Leading Carbon Black Producer

In a report published Friday, Morgan Stanley analyst Paul R. Walsh initiated coverage on Orion Engineered Carbons SARL OEC with an Equal-Weight rating and $19.40 price target. In the report, Morgan Stanley noted, “As a top 3 player in carbon black, Orion offers exposure to attractive themes across tyre and auto markets, and higher margin growth across specialty applications, where it is the market leader. However, its risk/reward profile is balanced and 14% base case upside is more supportive of an EW stance.” Orion Engineered Carbons SARL closed on Thursday at $17.26.