In a note out today, Morgan Stanley lowered its rating on Aeroflex (NYSE:

) to underweight from equal-weight with a $10 price target, which is below where the shares currently trade. The banks said it downgraded the stock because of because of 1) defense spending cuts pose an elevated headline risk; 2) weaker-than-anticipated LTE spending; and 3) what we believe is a low probability of achieving earnings guidance in the 2H of FY12. Morgan Stanley also lowered its 2012 EPS estimate on Aeroflex to 99 cents from $1.12.