UPDATE: Morgan Stanley Downgrades Teva Pharmaceuticals to Equal-Weight

Morgan Stanley lowers its rating on Teva Pharmaceuticals (NASDAQ: TEVA) to Equal-weight from Overweight while reiterating the price target of $47 a shre, as it believes the company's risk to reward ratio is now more balanced.

Morgan Stanley says, "An improved outlook, $3B share buyback, and new CEO Jeremy Levin have driven Teva's multiple from 7x to ~8x, but we now see the risk-reward as balanced in the context of our relative rating system. ...We and consensus expect Teva to prevail on Copaxone patent litigation. We see $1–$2 stock upside if Teva wins and $5–$6 downside if Teva surprisingly loses."

TEVA closed at $45.71 a share on Friday.