Morningstar initiated with a Buy at UBS

UBS initiated coverage of Morningstar with a Buy rating and $390 price target The combination of an “attractive” end market, exposure to key growth areas, and a cyclical recovery will lead to double-digit sales growth in the near term, at the high end of the peer group, the analyst tells investors in a research note. The firm says that with margins far below its primary comps, there is “significant earnings power to be unlocked on the cost side over time” for Morningstar. With the stock being fairly uncovered by the sell-side, the company’s “strong financial outlook may be not be fully appreciated by the Street,” adds UBS.