UPDATE: Morgan Stanley Downgrades Zillow on TAM Saturation Concerns, Stock Overvalued

In a report published Thursday, Morgan Stanley analyst Scott Devitt downgraded the rating on Zillow Z from Equal-Weight to Underweight, but raised the price target from $66.00 to $70.00. In the report, Morgan Stanley noted, “We downgrade Zillow to Underweight, as we have concerns about TAM saturation and believe the stock is overvalued relative to its market opportunity.” Zillow closed on Wednesday at $100.50.