Investment bank Morgan Stanley has cut its rating for EMI Group plc to "underweight" from "equal weight" and lowered its target price to 205p a share from 250p.

Investment bank Morgan Stanley has cut its rating for EMI Group plc to "underweight" from "equal weight" and lowered its target price to 205p a share from 250p.

The bank said good news for the stock was beginning to falter as recent data showed the music market declining in value in the first half of 2004 and September U.S. market numbers turned negative.

"There is evidence from the U.S. that piracy activity is picking up, that legitimate downloading is slowing down and that the pricing of CDs is under pressure in both the physical and digital world. Meanwhile we believe EMI will remain aloof from corporate activity in the music industry," Morgan Stanley said in a research note.

-- Reuters