NXL – Morgan Stanley rates the stock as Overweight

Morgan Stanley notes the company is in the highly unusual position of having its chief financial officer departing at the same time the CEO is retiring. In addition, the company is also hiring a chief operating officer and internal investor relations personnel.

The broker believes these are constructive steps and necessary to rebuild confidence but at the same time it will contribute to an elevated risk profile.

The broker remains positive on the business outlook yet expects the shares will continue to trade at a discount until investor confidence is restored. Overweight rating and $6.40 target maintained. Industry view is Attractive.

 

Target price is $6.40.Current Price is $2.73. Difference: $3.67 – (brackets indicate current price is over target). If NXL meets the Morgan Stanley target it will return approximately 57% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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