UPDATE: Morgan Stanley Downgrades Scripps Networks Interactive to Underweight on Growth and Margin Headwinds

Morgan Stanley downgraded Scripps Networks Interactive

from Equal-weight to Underweight and announced a $61.00 price target. Morgan Stanley noted, "SNI's key networks, HGTV and Food, hold unique positions with advertisers, ad buyers, and audiences. It has used its content success to grow affiliate revs 60% since ‘09. Going forward, however, this rev stream will grow at or below the industry unless and until the Travel Channel can deliver on its potential. Key industry growth drivers – domestic affiliate renewals, int'l distribution gains, accelerating buybacks – are not likely factors for SNI in 2013. Moreover, we believe increasing fragmentation of audiences, time shifting, and competition in its key genres will drive continued double-digit program investment growth, leading to below industry avg organic EBITDA growth." Scripps Networks Interactive closed at $60.44 on Thursday.