Market Overview

UPDATE: Morgan Stanley Downgrades Blue Nile to Equal-Weight on Tempered Growth Outlook

Related NILE
17 Stocks Which Rallied Three Days On Increasing Volume
Mid-Afternoon Market Update: Crude Oil Down 3%; Tripadvisor Shares Rise On Earnings Beat

Morgan Stanley downgraded Blue Nile (NASDAQ: NILE) from Overweight to Equal-weight and removed the price target of $48.00.

Morgan Stanley commented, "Changing our rating to Equal-weight, relative to our coverage universe: We still like the company, but we believe the stock will perform more inline with its peers until it can show sustained acceleration of non-engagement sales. We are concerned that the ultimate cost of driving non-engagement sales may be higher than we expected. … We are reducing our base case fair value to $36, which is driven by a DCF valuation analysis assuming a 14% WACC and 4% perpetual growth rate."

Blue Nile closed at $30.30 on Wednesday.

Latest Ratings for NILE

Jun 2016William BlairInitiates Coverage onMarket Perform
Feb 2016Bank of AmericaDowngradesNeutralUnderperform
Dec 2015Pacific CrestInitiates Coverage onSector Weight

View More Analyst Ratings for NILE
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Analyst Ratings


Related Articles (NILE)

View Comments and Join the Discussion!