UPDATE: Morgan Stanley Initiates Equal-Weight on Kayak Software; Valuation Full

Morgan Stanley initiated coverage on Kayak Software

with an Equal-weight rating and a fair value of $32 a share. Morgan Stanley noted, "We believe Kayak provides an attractive ROI for travel advertisers and its technology / brand will help it withstand competitive threats; however, we think these positive characteristics are largely reflected in the current stock price. We initiate Equal-weight with a $32 DCF fair value." Kayak Software closed at $29.37 on Monday.