UPDATE: Morgan Stanley Initiates Intermolecular at Equal-Weight on Elpida Bankruptcy

Morgan Stanley initiates its coverage on Intermolecular IMI with an Equal-weight rating and no price target. Morgan Stanley says, "We like the fundamental value proposition and see long-term value in the shares. However, uncertainty around Elpida's bankruptcy remains a near-term overhang. We conservatively budget for Elpida to hinder high margin royalty revenues, and delay royalty revenues into late CY14." IMI closed at $6.91 on Friday.