UPDATE: Morgan Stanley Reiterates on Changyou.Com Ltd. on Investment for Long-Term Growth

In a report published Monday, Morgan Stanley analyst Timothy Chan reiterated an Overweight rating on

, but lowered the price target from $44.00 to $40.00. In the report, Morgan Stanley noted, “Changyou's near-term margin will be under pressure as it steps up promotions in new games and mobile products, which is pivotal for its platform strategy. We expect margins to improve from 1H14 onwards. Stay OW for its low valuation, strong FCF and share buyback.” Changyou.Com Ltd. closed on Friday at $35.71.