STOCKS NEWS EUROPE-BBA Aviation rises on Morgan Stanley upgrade
Shares in British aircraft services provider BBA Aviation (LSE: BBA.L - news) rise as much as 3 percent after Morgan Stanley (Berlin: DWD.BE - news) upgrades the stock to "overweight" from "equal-weight", citing a recovery in business-jet activity in the United States.
The brokerage says U.S. business jet aircraft movements rose 3-4 percent year-on-year during the third and fourth quarter from only marginal growth during the first half of 2013.
BBA Aviation, which provides refuelling, ground handling, engine repair services, specialises in servicing business jets.
"The U.S. bizjet market is still about 16 percent below the 2007 peak. This suggests room for growth, as well as scope for good operational leverage when growth occurs," Morgan Stanley writes in a note to its clients.
The brokerage, which also raises its price target on the stock to 365 pence from 315 pence, also cited BBA's decision to return cash to shareholders as a reason for the upgrade.
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