UPDATE: Morgan Stanley Downgrades TripAdvisor to Equal-Weight; Growth Getting Expensive

Morgan Stanley downgraded TripAdvisor

from Overweight to Equal-weight and lowers the price target from $45.00 to $42.00. Morgan Stanley commented, "Our Overweight thesis on TripAdvisor centered on the long-term benefits from the transition to metasearch and a meaningful acceleration in revenue and profitability growth in 2013 on easier comps. We were disappointed with the 2013 guide of high-single digit EBITDA growth due to a new offline marketing campaign (low 20's EBITDA growth guidance excluding the offline campaign). While we are cautiously optimistic that the offline marketing campaign will accelerate hotel shopper growth, there is some uncertainty and growth may be getting more expensive to achieve." TripAdvisor closed at $46.90 on Wednesday.