UPDATE: Morgan Stanley Raises PT on AutoNation; Overall Story Does Not Change

In a report published Monday, Morgan Stanley analyst Ravi Shanker raised the price target on AutoNation (NYSE: AN) from $40 to $41 due to higher than expected 4Q13 Results. However, Shanker believed that, overall, AutoNation is still underweight.

According to the report, Morgan Stanley noted, "AN's strong 4Q performance was powered by primarily by a return to form on SG&A leverage and unexpected strength in gross margins. While we expected the former, the latter was powered by an exceptional performance in AN's Luxury franchises that we believe will normalize over time."

Shares of AutoNation closed at $49.39 on Friday.