The stock is up 1.82% to $29.59 in pre-market trade.
Bank of America said the upgrade was "based on a more attractive risk/reward given the recent pullback; earnings upside in wealth management, equities, and investment banking; and longer term upside from increasing efficiencies and capital return."
Continuing, the bank noted that, "While there are still clearly headwinds for MS and the industry given the numerous regulatory changes, with the stock trading below year-end TBV and expectations of ROTEs moving to 10/11% in 2015/2016, we view the risk/reward as attractive. Our rating is now Buy & our PO remains $35."
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