UPDATE: Morgan Stanley Initiates Coverage On HD Supply Holdings As Good Cycle Position Is Already In Price

In a report published Tuesday, Morgan Stanley analyst Nigel Coe initiated coverage on HD Supply Holdings (NASDAQ: HDS) with an Equal-Weight rating and $28.00 price target.

In the report, Morgan Stanley noted, “We like HDS' exposure to a cyclical rebound in construction and institutional spending, though we believe expectations have largely been right-sized following a strong 4Q beat. Mgmt has interesting balance sheet optionality, though largely baked into our estimates. Initiating at EW with a $28 PT.”

HD Supply Holdings closed on Monday at $26.67.