As previously reported, Morgan Stanley analyst Sharon Shih downgraded AU Optronics (AUO) and LG Display (LPL), each to Equal Weight from Overweight, noting that a lengthier TV set inventory digestion mainly in China and the U.S. led TV panel prices to plunge 8%-25% quarter-to-date and she expects large-sized TFT-LCD panel prices to further decline in July. Shih has reduced her year-over-year demand area growth forecast for 2018 from 6.8% to 5.1% to factor in disappointing TV demand in the first half and cites an increased oversupply glut in 2018 creating heavier profit pressure in her downgrade of both stocks.