ITG's (ITG) secular growth story remains intact following solid Q2 results, with initial guidance coming in ahead of expectations, Morgan Stanley said in a Monday note.

The note said the negative initial market reaction to the results was disproportionate to the downside given its smaller ticket size focus and bolt-on M&A strategy that should cut execution risk.

The report said organic growth is expected to step-up in H2 driven by the lack of some cold weather and permitting delays.

"We see the drawdown in shares following the ~5% beat as an attractive buying opportunity," the note said.

It said the growth story that was outlined in its recent initiation report is still intact, including fiber deployment commitments and some 38% year-over-year total backlog growth.

Morgan Stanley kept its overweight rating while lowering its price target to $18 from $19 to mark to markets for the recent de-rating in communication E&C peers.

Price: 13.13, Change: +0.16, Percent Change: +1.23