HSBC last night upgraded Morgan Stanley to Buy from Hold with a price target of $118, up from $103. The firm believes the stock’s “long period of underperformance could be ending.” Morgan Stanley’s “leading” investment banking and wealth management franchises should continue benefiting from a healthy market backdrop, boosting financial performance, the analyst tells investors in a research note. HSBC says concerns about net interest income seem overdone in light of the bank’s “healthy” fee based asset flows and accelerating management fee growth in wealth management.
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