UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Lowers PT on Pier 1 Imports on Multiple Challenges

In a report published Thursday, Morgan Stanley analyst Simeon Gutman reiterated an Equal-Weight rating on

, but lowered the price target from $16.00 to $14.50. In the report, Morgan Stanley noted, “Looking at PIR's Q2 miss, 2015 guide down, and recent struggles as solely omni-channel related may miss what seems to be happening to the underlying business. Namely, momentum in the home furnishings segment is choppy,competition from both physical and digital retail is intensifying,and the environment continues to be highly promotional. PIR is having to respond to these issues amid a costly (but important) omni-channel transformation while cycling difficult multi-year sales and gross margin comparisons.” Pier 1 Imports closed on Wednesday at $15.54.