The downgrade to Equal-Weight suggests that Morgan Stanley believes Karuna Therapeutics is now fairly valued and may not provide the same level of outperformance as suggested by the previous Overweight rating. However, the increase in the price target indicates a belief that the stock still has potential to grow, albeit at a more moderate pace. This mixed signal could lead to a neutral short-term impact on the stock price as investors digest both the downgrade and the raised price target.