McGraw Hill's (MH) market share gains will be driving the stock performance amid its "attractive" valuation, Morgan Stanley said in a Monday note.

"McGraw Hill has captured share in its market in recent years, and we believe continued share gains are the key driver for the stock," the report said.

The note also said the stock is "attractively" priced at a 2-turn discount to its closest peer, Pearson.

The report said the the education content provider operates in a $30 billion market and has leading scale, allowing it to outspend smaller providers on technology and content.

It also pointed to a number of growth opportunities, including utilizing technology to expand existing customer relationships and attract new customers.

Morgan Stanley started coverage on the stock with an overweight rating and a $20 price target.

Price: 14.03, Change: +0.68, Percent Change: +5.09