UPDATE: Morgan Stanley Lowers PT on Talbots to $3.50

Morgan Stanley is out with its report today on Talbots TLB, lowering its PT to $3.50. In a note to clients, Morgan Stanley writes, "With TLB's EV at ~$270M (6/9 close), the company is trading at the value of its receivables ($164M) and a portion of its inventory ($177M), implying low expectations for future cash generation. Based on our lowered EPS forecasts we cut our PT to $3.50 and remain OW." At the time of posting, shares of TLB were trading pre-market at $2.76, up 1.47% from Thursday's close.