Highwoods upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Highwoods Properties (HIW) to Equal Weight from Underweight with a price target of $23, down from $24. The firm says its Underweight thesis has played out. Highwoods’ multiple contraction relative to peers has already been significant despite its much lower leverage, the analyst tells investors in a research note. Morgan Stanley believes a dividend cut may potentially be a positive catalyst, freeing up the company’s cash flow for capex or debt reduction. It cites valuation for the upgrade.