UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on Intel Corporation

In a report published Friday, Morgan Stanley reiterated its Underweight rating on Intel Corporation

, but lowered its price target from $22.50 to $20.00. Morgan Stanley noted, “We are positive on Intel's manufacturing leadership, but think they could spend much less without slowing node transitions, and fulfill all of the growth in PC, Data Center, and tablet markets. Whether we are right about that or not, accelerating investment levels yet again will continue to pressure margins, cash flows, and returns long-term unless growth accelerates. The company has been executing well in a tough environment but the spending increase makes the investment case tougher for us.” Intel Corporation closed on Thursday at $22.68.