UPDATE: Morgan Stanley Reiterates on Praxair Ahead of 1Q14 Results

In a report published Wednesday, Morgan Stanley analyst Vincent Andrews reiterated an Equal-Weight rating on

, but removed the $140.00 price target. In the report, Morgan Stanley noted, “We expect a neutral to positive response to Prax's 1Q14 results. Neutral as: i) Praxair's results beat our recently reduced EPS estimate (note: interest expense was a $0.02 headwind relative to our forecast), but was in line with consensus, and in the middle of the company's guidance range; ii) The company narrowed its guidance range for the full year by $0.05 on both sides to $6.30-$6.55 versus consensus of $6.47 and MSe of $6.45 (2Q guidance of $1.55-$1.60 compares to consensus of $1.62 and MSe of $1.57); and iii) ROIC declined both year-over-year and sequentially, but management expects it to increase in the back half of the year. "Positive because: i) Volume grew year-over-year in all regions; ii) Price was positive in all regions except for Europe where it was flat. F/X was a 4% drag on operating profit (negative in South American, partially offset by Europe) and will be a 10% drag in South America for the full year.” Praxair closed on Tuesday at $131.97.