UPDATE: Morgan Stanley Downgrades Level 3 Communications to Equal-Weight, Removes PT on Balanced Risk-Reward

In a report published Friday, Morgan Stanley analyst Simon Flannery downgraded the rating on

from Overweight to Equal-Weight, and removed the $28.00 price target. In the report, Morgan Stanley noted, “We are downgrading Level 3 from Overweight to Equal-weight after strong stock price appreciation which leaves only 2.5% upside to our base case valuation of $28. At current levels we believe the risk reward is balanced. Our estimates and valuation remain unchanged.” Level 3 Communications closed on Thursday at $27.31.