UPDATE: Morgan Stanley Downgrades HomeAway on Balanced Risk/Reward, Tempered Volume Growth

In a report published Thursday, Morgan Stanley analyst Scott Devitt downgraded the rating on

from Overweight to Equal-Weight, and removed the $36.00 price target. In the report, Morgan Stanley noted, “A slowdown in subscription listing growth coupled with our view that pay-per-booking (PPB) may not be a bigger revenue contributor than the market expects cause us to downgrade shares to EW. We like the fundamentals of HomeAway's business but think shares offer a balanced risk / reward.” HomeAway closed on Wednesday at $30.93.