UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on Intel Corporation on Gross Margin Pressure

In a report published Monday, Morgan Stanley analyst Joseph Moore reiterated an Underweight rating on Intel Corporation INTC, but removed the $24.00 price target. In the report, Morgan Stanley noted, “We analyze the underpinnings of recent gross margin strength: On flat 2014 revenues, we would have expected gross margins of about 58%, vs. the 61% the company is guiding to. That provided a nice surprise at the 1Q earnings report, but our belief is that GMs are peaking in 2q (as mgmt said), and will be under pressure next year.” Intel Corporation closed on Friday at $25.82.