UPDATE: Morgan Stanley Initiates Overweight, $28 PT on Delphi Automotive

Morgan Stanley initiates coverage on Delphi Automotive (NYSE: DLPH) as it sees the reborn company to be leaner, greener and stronger.

Morgan Stanley notes, "Delphi has used its 5-year bankruptcy to undergo an impressive transformation from a bloated corporation to a focused secular story with a best-in-class cost structure. In the near-term, however, we believe the stock will have to overcome technical overhangs before it gets the multiple it deserves."

DLPH closed at $21.94 per share on Friday.