UPDATE: Morgan Stanley Reiterates Overweight Rating, Lowers PT on K12 as FY14 Rev Guide is a Little Light

In a report published Wednesday, Morgan Stanley analyst Suzanne E. Stein reiterated an Overweight rating on K12 LRN, but lowered the price target from $30.00 to $29.00. In the report, Morgan Stanley noted, “While 2014 has turned out to be disappointing, we view it as a bridge year towards a more solid 2015. We continue to believe funding will improve thanks to stabilizing state budgets while management will continue to focus on cutting costs. We arrive at a price target of $29 (vs. $30 previously) using a DCF-based valuation methodology, which suggests significant upside from current levels.” K12 closed on Tuesday at $21.33.