UPDATE: Morgan Stanley Downgrades Bonanza Creek Energy

According to a research report published this morning, Morgan Stanley has downgraded Bonanza Creek Energy BCEI from Overweight to Equal-weight. In the report, Morgan Stanley said, "Our downgrading is based on: i) our view that the company's Niobrara inventory is becoming increasingly priced into the stock and ii) a slowing rate of improvement and potential upside in BCEI's Rockies and Mid-Con assets. Although we are reducing exposure, we continue to view BCEI as a more than capable operator with a low-risk development plan that is organically funded even at low gas prices." Morgan Stanley maintains its $22 PT on Bonanza Creek Energy, which closed yesterday at $19.98.