UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Lowers PT on Renren

In a report published Wednesday, Morgan Stanley reiterated its Equal-Weight rating on Renren

, but slightly lowered its price target from $4.20 to $3.80. Morgan Stanley noted, “3Q sales rose 47% YoY, boosted by strong game sales (+120% YoY), which buffered the weaker ad sales (-14% YoY). Competition on social ads, especially from Tencent and Sina, remains intense. We would turn more positive when it starts to break even. Maintain EW on a high net cash balance.” Renren closed on Tuesday at $3.38.