UPDATE: Morgan Stanley Downgrades Houghton Mifflin Harcourt On Cautious 2016 Outlook

In a report published Wednesday, Morgan Stanley analyst Denny Galindo downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $22.00 to $18.00. In the report, Morgan Stanley noted, “Cautious on 2016 with less Common Core lift, softer state education budgets (retrenching oil states & stagnant home prices), and fading billing growth. Volatile revenue leads to lower multiples.” Houghton Mifflin Harcourt closed on Tuesday at $19.86.