UPDATE: Morgan Stanley Cuts PT to $8.50 on CNInsure Following Down Guidance

Morgan Stanley maintained CNInsure

with an Overweight rating and lowered the price target from $9.00 to $8.50. Morgan Stanley noted, "We remain OW on improving margin, better revenue growth outlook, low valuation, potential capital management and corporate restructuring. … Management guided for 5-15% revenue growth in the next two years: Management stated that the gross margin bottomed in 3Q12 and will improve over the next two years to a more normalized level of 35-40%." CNInsure closed at $5.93 on Monday.