UPDATE: Morgan Stanley Downgrades Demand Media to Underweight

In a research report published today, Morgan Stanley downgraded Demand Media (NYSE: DMD) from Equal-weight to Underweight.

In the report, Morgan Stanley commented, “DMD is transitioning content production from low-cost/short-form to higher-cost/ uncertain-ROI, thus competing with better-known, better-funded media brands. We see little early evidence of success and view the stock's risk/reward as less attractive than peers.”

Morgan Stanley maintains its $7 PT on Demand Media, which closed yesterday at $6.38.