Morgan Stanley analyst Keith Weiss lowered his price target on shares of Slack Technologies Inc. /zigman2/quotes/212180539/composite WORK -1.80% to $28 from $38 on Wednesday, writing that he expects a number of factors to impact Slack's trading multiple, including heightened competition, weakening IT spending, and mixed results in its most recently reported quarter. The stock is down 7% in Wednesday's session. Weiss sees a "tougher road to large opportunity" for the workplace messaging company, and because he doesn't forecast multiple expansion, he said any upside to the stock price will have to come from "more gradual outperformance over time." He rates the shares at equal weight. Slack's stock is off 33% over the past three months, as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.20% has dropped 0.5%.
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Cloud software stock slammed amid Workday fears, Morgan Stanley doubts