UPDATE: Morgan Stanley Downgrades Douglas Emmett to Underweight, Lowers PT on Company-Specific Headwinds

In a report published Tuesday, Morgan Stanley analyst Vance H. Edelson downgraded the rating on Douglas Emmett

from Overweight to Underweight, and lowered the price target from $25.00 to $23.00. In the report, Edelson noted, “Further strengthening in the Los Angeles and Honolulu office markets will come only gradually and the West Coast thesis is already well understood by investors. We see company-specific headwinds such as concessions and roll downs keeping a lid on NOI growth this year, plus a lack of catalysts given the scarcity of acquisition candidates. Shares appear somewhat expensive.” Douglas Emmett closed on Monday at $25.59.