BrightView (BV) reported lower-than-expected Ebitda and free cash flow while revenue growth was slightly below expectations in fiscal Q3, Morgan Stanley said in a report Wednesday.

The results led the company to guide down Ebitda by 7% and free cash flow by 30%, the report said.

"We view the quarter as a step back from the recent momentum BV has generated," the note said.

"While most of the miss was one-time in nature (insurance claims charge and elevated fuel costs), it is yet another headwind in BV's recovery, and revenue growth didn't do enough to offset," it added.

Morgan Stanley cut its price target to $12.50 from $14.00 while keeping its equal weight rating, saying upside inflection potential is offset by execution risk.

Price: 11.23, Change: +0.63, Percent Change: +5.94