UPDATE: Morgan Stanley Downgrades Digital River to Underweight

Morgan Stanley is out with its report today on Digital River DRIV, downgrading DRIV to Underweight. In its report, Morgan Stanley writes, "Downgrading to Underweight on growing concern that DRIV's software and gaming segments are becoming less relevant due to structural shift in distribution to app stores where DRIV has limited presence. Weak traction in the consumer electronics space and dependence on MSFT MSFT are also concerns. We believe DRIV shares offer an unattractive risk/reward relative to our coverage universe and are lowering estimates below consensus." Morgan Stanley has a $22 PT on DRIV. At the time of posting, shares of DRIV were trading pre-market at $21.79, down 1.98% from Tuesday's close.