Morgan Stanley Upgrades HLS To Overweight From Equal-weight

Morgan Stanley is upgrading shares of HealthSouth Corporation HLS to Overweight from Equal-weight, establish a $28.00 price target “and raise our 2011/2012 EBITDA estimates from $445mm / $478mm to ~$450mm / $480 mm, above current consensus of ~$440mm / $470mm.” “Our Overweight rating reflects our view that: 1) consensus forecasts will rise in 2011; 2) solid volume growth should allow HLS to leverage its industry high margins (north of 20%); and 3) risk-reward is skewed toward our bull case,” Morgan Stanley writes. HealthSouth Corporation currently trades at $23.31.