UPDATE: Morgan Stanley Downgrades Sohu.com to Underweight, Lowers PT on Low Visibility

In a report published Tuesday, Morgan Stanley analyst Philip Wan downgraded the rating on Sohu.com SOHU from Equal-Weight to Underweight, and lowered the price target from $60.70 to $57.60. In the report, Morgan Stanley noted, “Despite solid performance from brand ads and Sogou, heavier investments in Changyou (online gaming) result in a softer 2014 margin outlook. Competition remains intense for its online video and search businesses. Move to UW due to low visibility on near-term margin with a new PT of US$57.6 per share.” Sohu.com closed on Monday at $71.55.