UPDATE: Morgan Stanley Downgrades Teva Pharmaceutical Industries Ltd. to Underweight, Removes PT on Earnings Pressure

In a report published Monday, Morgan Stanley analyst David Risinger downgraded the rating on

from Equal-Weight to Underweight, and removed the $40.00 price target. In the report, Morgan Stanley noted, “Earnings face significant pressure in 2014-2017E when Copaxone, Treanda, and Nuvigil go generic. Copaxone margin pressure offsets cost cuts in our base case. Despite discounted valuation, we believe other stocks in our coverage universe offer a better risk-reward on revenue and growth prospects. Bull/bear cases continue to hinge on Copaxone franchise durability. Brand pipeline success, cost cutting, and external deals could drive upside.” Teva Pharmaceutical Industries Ltd. closed on Friday at $38.91.