UPDATE: Morgan Stanley Downgrades CoStar Group to Underweight; Valuation Full

Morgan Stanley reduced its rating on CoStar Group (NASDAQ: CSGP) from Equal-weight to Underweight and established a new price target of $37. Morgan Stanley commented, "With the catalyst of the LoopNet merger behind, uncertainty about integration and rev synergies ahead, and the stock pricing in a very bullish scenario, we move to UW. We believe the stock price currently reflects the company's long-term goals of $500M run-rate revenue by the end of 2014 and adjusted EBITDA margins in the low- to mid-thirties, leaving little room for upside from these levels, and is not discounting the risk that the company may not achieve them."CoStar Group closed at $83.24 on Wednesday.