NEW YORK (TheStreet) -- Shares of TrueCar (TRUE) - Get Report were dropping in mid-morning trade on Monday as Morgan Stanley trimmed its rating on the shares to "underweight" from "equal weight."

Additionally, the firm upped its price target on the stock to $6.40 from $5.

Morgan Stanley said that the Santa Monica, CA-based vehicle website's valuations have gotten ahead of its fundamentals.

The firm also downgraded the general Internet industry from "attractive" to "in-line," noting that "multiple expansion will be a more difficult driver... going forward" for online companies like TrueCar.

However, large-cap companies like Facebook (FB), Priceline (PCLN) Alphabet (GOOGL) and (AMZN) still have "attractive growth-adjusted valuations and upward revisions ahead," and Morgan Stanley noted that it remains bullish on these stocks.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

You can view the full analysis from the report here: TRUE

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