UPDATE: Morgan Stanley Reiterates On China Nepstar Chain Drugstore Ltd. Following 1Q14 EPS Miss

In a report published Friday, Morgan Stanley analyst Bin Li reiterated an Underweight rating on

, but removed the $1.30 price target. In the report, Morgan Stanley noted, “NPD's 1Q14 EPS of Rmb-0.09 missed our estimate, as in line sales growth was offset by higher operating expense. Although SSS growth improved YoY, the higher operating expense will continue to outgrow its sales growth, implying lower bottom-line growth, in our view.” China Nepstar Chain Drugstore Ltd. closed on Thursday at $2.43.