UPDATE: Morgan Stanley Downgrades Research In Motion to Underweight; Long-Term Value Below Today's Share Valuation

Morgan Stanley reduces its rating on Research in Motion

and lowers its price target to $7. Morgan Stanley comments, "The next 9 months likely see rapidly deteriorating fundamentals on the one hand offset by stories of potential strategic options on the other, following the announcement last month that RIMM hired JPM and RBC to assist in a strategic review of its business, leaving the stock pushed and pulled strongly in both directions. In this volatile situation, we downgrade to UW as after all the inevitable ups and downs, we believe the long-term value of the business is below the current stock price." RIMM closed at $9.85 on Friday.