UPDATE: Morgan Stanley Downgrades Solazyme to Equal-Weight, Lowers PT on Lack of Conviction in LT Outcome

In a report published Monday, Morgan Stanley analyst Timothy Radcliff downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $15.00 to $4.00. In the report, Morgan Stanley noted, “With shares trading below $4, our first thought is that sentiment may be too negative,and there could be upside potential if the company resolves the delays relatively soon. While this may prove to be true, we do not have data to suggest a quick or affordable resolution,and cannot with strong conviction remain overweight at this time.” Solazyme closed on Friday at $3.63.