UPDATE: Morgan Stanley Reiterates on Renren Following First YoY Revenue Decline

In a report published Friday, Morgan Stanley analyst Timothy Chan reiterated an Underweight rating on

, but lowered the price target from $3.10 to $2.70. In the report, Morgan Stanley noted, “RENN reported its first YoY revenue decline and the largest quarterly operating loss since IPO. Headwinds from mobile monetization challenges and intensifying competition remain. 4Q sales are expected to drop 36-41% YoY. The share price is supported by high net cash balance and buyback.” Renren closed on Wednesday at $3.35.