Morgan Stanley Remains Overweight On Rockwell Collins

Morgan Stanley is out with a research report on Rockwell Collins ROC and is cutting its earnings estimates, but is remaining Overweight with a $72 price target on shares. In a note to clients, Morgan Stanley writes, "FY3Q was a tale of two end-markets for COL. Improving aero backdrop & better results on the commercial systems was overshadowed by a miss on the gov't side thanks to defense budget delays w/ the Continuing Resolution. Now that expectations have been reset, COL could outperform should fears of further cuts not come to fruition and/or mgmt releases a more upbeat FY12 guidance in Sept, guiding near/close to our $4.50e." Shares of ROC gained 46 cents on Friday to close at $61.12.