UPDATE: Morgan Stanley Cuts PT to $6.70 on Dangdang

Morgan Stanley lowers its price target on Dangdang

from $7 to $6.70 as it reiterates an Equal-weight rating on shares. Morgan Stanley notes, "Despite softer-than-expected 1Q12 sales, gross margin improved on Dangdang's strategic shift to higher-margin online marketplace. With earnings visibility still low, we maintain EW and cut PT 4%." DANG closed at $7.49 on Thursday.