UPDATE: Morgan Stanley Downgrades Cloud Peak Energy to Equal-Weight

Morgan Stanley lowers its rating on Cloud Peak Energy CLD to Equal-weight from Overweight, while reiterating its $25 target price, as stock is seen as less a defensive play than perceived. Morgan Stanley comments, "CLD is losing its defensive appeal as natural gas challenges PRB coal's cost advantage. We do not see major demand loss at present, but utilities' switching from PRB to gas is a growing risk that limits upside to prices. The bull case (PRB exports) is attractive, but may take a year to materialize." CLD closed at $19.60 a share on Monday.