UPDATE: Morgan Stanley Downgrades Zynga on Updated Guidance, Workforce Transition

In a report published on Friday, Morgan Stanley analyst Scott Devitt downgraded Zynga ZNGA from Equal-weight to Underweight and removed the price target on the company of $5. In the report, Morgan Stanley stated, "Zynga no longer appears to be the leader in US web social gaming, but its audience is still significant at 52MM daily active users / 253MM monthly active users as of CQ1:13...Mobile is a larger and potentially faster-growing market than web; Zynga is developing quality mobile games but this channel has yet to offset declines from web games...Zynga's large workforce continues to pressure near-term EBITDA margins" Zynga closed on Thursday at $2.86