UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on Trulia Following AlphaWise Survey

In a report published Monday, Morgan Stanley analyst Scott Devitt reiterated an Underweight rating on

, but lowered the price target from $31.00 to $28.00. In the report, Morgan Stanley noted, “Even though Trulia shares trade at a large valuation discount to Zillow, we believe Trulia faces structural challenges as the number 2 player that is playing catch-up on advertising to grow its audience. Furthermore, we view Trulia's acquisition of Market Leader as a risky strategy relative to Zillow's smaller ‘tuck-in' deals and open-source CRM offering.” Trulia closed on Friday at $30.69.