UPDATE: Morgan Stanley Downgrades Neurocrine Biosciences on Recent Stock Appreciation

In a report published Wednesday, Morgan Stanley analyst David Friedman downgraded Neurocrine Biosciences (NASDAQ: NBIX) to EqualWeight from OverWeight, raising its price target to $16.00.

According to the report, the price target increase is based on a set of model changes including adding VMAT sales. The downgrade is due to the recent stock appreciation.

“While we expect clinical and commercial success for Elagolix in both endometriosis and uterine fibroids, we are changing our rating from OW to EW based on a seemingly more balanced risk-reward with the stock at current levels,” the report noted. “We have made a series of model changes, including adding '854 (VMAT) sales to our model in light of the recent, albeit somewhat modest benefit shown in the KINECT 2.”

NBIX closed Tuesday at $18.51 with shares trading up 89.69 percent.