Financial Services
Wells Fargo, PNC are 'Key' Bank Stock Picks: Analyst (Update 3)
Staite downgraded Morgan Stanley to "Underweight," with a price target of $18, because of the company's continued weakness in trading revenue. The analyst also said that "given it has higher funding cost and a relatively fixed [expense] base, we forecast [return on tangible equity] at only 6% in 2012.
State lowered his 2012 EPS estimate to $1.77 from $1.81 and his 2012 estimate to $2.24 from $2.26.
"Looking forward we see limited improvement with revenues suffering from macro uncertainty and new regulations," he said.
Morgan Stanley's shares trade for just 0.6 times the company's reported Dec. 31 tangible book value of $31.42, and 10 times the consensus 2012 EPS estimate of 91 cents.
Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.
-- Written by Philip van Doorn in Jupiter, Fla.
To contact the writer, click here: Philip van Doorn.
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