UPDATE: Morgan Stanley Downgrades Analog Devices to Equal-Weight on Industrial Headwinds

Morgan Stanley reduced its rating on Analog Devices (NASDAQ: ADI) from Overweight to Equal-weight. Morgan Stanley said, "Data points signaling continued weakness in industrial markets are perhaps not surprising, but with another modest estimate cut today and stock price appreciation over the last few months, the stock now has only 9% upside to our base case scenario within 12 months. … While we significantly underestimated fundamental headwinds in the industrial space, valuation upside was central to our call and as the multiple climbs we would rather step to the sidelines. We remain constructive on ADI's business overall, in particular on the potential for increased cash return to shareholders."Analog Devices closed at $38.18 on Wednesday.