UPDATE: Morgan Stanley Reiterates Underperform Rating, Removes PT on Changyou.Com Ltd After Revenue Misses Guidance

In a report published Monday, Morgan Stanley analyst George Meng reiterated an Underperform rating on

, but removed the $23.80 price target. In the report, Morgan Stanley noted, “Total revenue was US$177.8mn, down 2% QoQ and 3% YoY, mainly due to the miss in gaming revenue, which was down 6% QoQ and 9% YoY to US$153.9mn.Total revenue missed lower end of prior guidance by 2.3% while gaming revenue missed by 4.4%.We note this is the first time since its IPO that Changyou has missed its quarterly revenue guidance. Management attributed the fall in revenue to the decrease in all 3 major games - TLBB, Wartune and DDTank.” Changyou.Com Ltd closed on Friday at $23.95.