UPDATE: Morgan Stanley Initiates Coverage On Diplomat Pharmacy To Capitalize On Special Situation

In a report published Wednesday, Morgan Stanley analyst Ricky R. Goldwasser initiated coverage on

with an Equal-Weight rating and $26.00 price target. In the report, Morgan Stanley noted, “As the largest specialty pharmacy pure play, DPLO offers exposure to fastest growing area in biopharma. We are bullish on DPLO's growth opportunities but with stock up 85% since IPO, we rate it EW. DCF-based $26 PT captures LT pipeline opportunity but not upside from M&A or Ph2 pipeline optionality.” Diplomat Pharmacy closed on Tuesday at $24.01.