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

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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

Feb 2016Bank of AmericaDowngradesNeutralUnderperform
Dec 2015Pacific CrestInitiates Coverage onSector Weight
Aug 2015RBC CapitalMaintainsSector Perform

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Posted-In: Morgan StanleyAnalyst Color Downgrades Analyst Ratings


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