UPDATE: Morgan Stanley Downgrades Pandora Media to Equal-Weight; Opportunities Raise Cost

Morgan Stanley cut its rating on Pandora Media

from Overweight to Equal-weight and suspended its previous $14 price target. Morgan Stanley noted, "Pandora's primary near-term monetization catalyst is its build-out of sales teams to capitalize on local radio dollars. We believe these costs are not yet reflected in Street estimates and the impact on profitability may weigh on P's share price in a tough market. Downgrade to EW, $12 base case." Pandora Media closed at $10.11 on Friday.