UPDATE: Morgan Stanley Downgrades Procter & Gamble to Equal-Weight

Morgan Stanley downgrades Procter & Gamble (NYSE: PG) to Equal-weight from Overweight as the stock reaches a 52-week high close to the no-longer-held price target of $68 with no upside in view.

Morgan Stanley says, "Three reasons for our downgrade: 1) We expect EPS downside in FY12 as our analysis indicates fiscal H2 guidance/consensus are too high. 2) Topline downside risk given PG's above-peer macro sensitivity and high demand elasticity to increased pricing. 3) Relative valuation is no longer compelling."

PG closed at $66.08 per share yesterday.