UPDATE: Morgan Stanley Downgrades Eclipse Resources On Rational Activity Reduction At Lower Prices

In a report published Wednesday, Morgan Stanley analyst Drew Venker downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $16.00 to $12.00. In the report, Morgan Stanley noted, “We are downgrading to Equal-weight due to concerns over growth in a lower commodity price environment. We believe Eclipse has an increasing focus on minimizing leverage which would most likely take the form of lower spending in 2015. The result would be lower growth and a larger implied EBITDA multiple. However, we continue to believe that Eclipse has concentrated exposure to the best acreage in the Utica.” Eclipse Resources closed on Tuesday at $9.02.