UPDATE: Morgan Stanley Downgrades LSI Corporation to Equal-Weight, Raises PT on News of Proposed Acquisition by Avago

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

from Overweight to Equal-Weight, but raised the price target from $10.00 to $11.15. In the report, Morgan Stanley noted, “Avago has announced a proposed acquisition of LSI for $11.15/share, representing a 40% premium to the 12/13 closing price. This confirms our view that shares would be re-rated to reflect future growth. We do not anticipate any contingencies with closing and move to an EW rating, $11.15 PT.” LSI Corporation closed on Tuesday at $10.92.