In the good books
AUTOMOTIVE HOLDINGS GROUP LIMITED (AHG) Upgraded to Overweight from Underweight by Morgan Stanley B/H/S: 6/1/0
Auto Holdings has pulled off a game changer, Morgan Stanley believes, in selling its troublesome refrigerated logistics business for a much better than expected $400m. This will leave around $300m in the kitty for acquisitions and/or a special dividend while only representing around -2% in lost earnings. The remaining auto division has had a slow start to the year but the worst is now behind WA, the broker suggests, and the new kitty provides greater confidence in growth. The result is a double-upgrade from Morgan Stanley to Overweight from Underweight. Industry View is In-Line and target rises to $4.10 from $3.00.