UPDATE: Morgan Stanley Downgrades Mylan To Equal-Weight From Overweight

Mylan's MYL stock is close to Morgan Stanley's $25 price target. Its accelerating US revenue growth thesis is playing out and Morgan Stanley had hoped to raise its price target, but EMEA price pressure is constraining upside. EMEA sales declined 4% in 1Q:11A after declining 6% in 2010A, and management now expects a full-year 2011 decline. Government pricing headwinds and intense price competition remain challenges. The stock's valuation reflects Mylan's strong US business, but Morgan Stanley believes that a return to solid, constant currency growth in EMEA is key to the next leg of stock performance, and timing is unpredictable. Morgan Stanley is lowering its 2011E EPS from $2.00 to $1.96 based upon lower EMEA sales estimates while 2012E of $2.32 is unchanged. MYL is trading lower at $24.17