Morgan Stanley raises its Roche price target to CHF227 from CHF200 and its Novartis target to CHF61 from CHF49.50. Morgan Stanley cites Roche as one of its favored stocks in the European pharma industry and keeps an overweight rating. The bank points to the company's strong pricing and innovation power and expected synergies from the full takeover of Genentech. With Novartis, Morgan Stanley likes the company's strong late-stage pipeline, potential of MS drug FTY720 and favorable valuation. Novartis is at equalweight.