UPDATE: Morgan Stanley Downgrades Ambarella to Equal-Weight, Removes $18 PT on Balanced Risk/Reward

In a report published Wednesday, Morgan Stanley analyst Joseph Moore downgraded the rating on

from Overweight to Equal-Weight, and removed the $18.00 price target. In the report, Morgan Stanley noted, “Valuation has moved higher, as the company has executed very well since the IPO, consistently hitting numbers despite some headwinds in the highest margin part of the business (broadcast). Growth prospects remain solid, though we maintain valuation sensitivity, given immature end markets in auto and sports cameras with reasonably high customer concentration. With the stock trading at 18x 2014 EPS, we still see solid growth, but the risk reward is a bit more balanced from here.” Ambarella closed on Tuesday at $21.50.