Security software company Network Associates (NETA) was down 4.6% in preopen Instinet trading after it was downgraded by Morgan Stanley to neutral from strong buy based on valuation.
Morgan Stanley says it sees fundamentals continuing to improve, and security software in general remains a priority for "key decision makers." But the brokerage says it is concerned that the stock's recent advance has left it overvalued.
Morgan Stanley has a price target of $15 on the stock. It closed Monday at $16.45.