Embecta upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Embecta (EMBC) to Equal Weight from Underweight with a price target of $20, up from $13, following the company’s announcement last week of its plans to discontinue its patch pump program. The firm’s previous negative view was driven largely by the patch pump and the firm now expects Embecta’s margin profile to be more attractive than prior assumptions, reflecting the cost savings achieved by the discontinuation with cash generation “set to scale nicely,” the analyst tells investors.