UPDATE: Morgan Stanley Downgrades TW Telecom from Overweight to Equal-Weight Based on Slower Revenue Growth

In his Thursday research report, Morgan Stanley analyst Simon Flannery downgraded TW Telecom

from overweight to equal-weight and cancelled its price target at $27. On why he decided to to downgrade TW Telecom, Flannery stated in the report, "TW Telecom remains well positioned to see strengthening growth from its Enterprise data product line given the heightened demand for colocation connectivity, dynamic IP, Ethernet, and IP VPN customized services. Churn has shown consistency to compliment top-line growth. Though elevated, success-based capex is geared toward TWTC's growth segments and still maintains TWTC's historical FCF generation trend. While the secular demand trends remain attractive, the current valuation of 8.7x 2014E EV/EBITDA seems to fairly reflect the business fundamentals." TW Telecom is currently trading at $28.73 down 1.73 percent during intraday trading from Wednesday's close.