Morgan Stanley suggests the stock has rebounded on the back of SG Fleet’s ((SGF)) offer at $2.52 a share. The broker suspects the bid was a catalyst for the market to ascribe value to Right2Drive and Grays.
Morgan Stanley values the core leasing business at $2.50 a share and now includes $0.50 a share for Right2Drive and Grays. The broker maintains an Overweight rating and raises the target to $3.00 from $2.50. Industry view is In-Line.
Sector: Diversified Financials.
Target price is $3.00.Current Price is $2.64. Difference: $0.36 – (brackets indicate current price is over target). If ECX meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).