NEW YORK (
shares were flat while most financial stocks traded lower Wednesday, even after an analyst cut his price target and slashed second-quarter earnings targets for the investment bank.
shares were little changed at $134.85 after Barclays Capital analyst Roger Freeman lowered his price target on the bank's stock to $175 from $195 and dropped his second-quarter earnings estimate to $1.95 a share from $5.35 a share. Freeman cited deteriorating market conditions since the end of the first quarter which have sparked higher volatility and "flight-to-safety" trades.
"We believe this market dislocation, while certainly smaller than the dislocations seen in 2008 and early 2009, has impacted broker-dealer revenue generation in terms of client activity levels, trading revenue and investment banking results," Freeman wrote in a research note.
Barclays' Freeman also lowered his second-quarter view on
on those same tougher market conditions. Freeman expects Morgan Stanley will have second-quarter earnings of 55 cents a share, down from his prior target of 77 cents a share and below Wall Street's average estimate of 63 cents a share.
Shares of Morgan Stanley were down 0.6% to $25.04.
Most other major U.S. bank stocks were sliding during Wednesday's session.
Bank of America
fell 1.2% to $15.39,
was down 0.9% to $27.22, and
was off 0.1% to $3.93.
On the upside,
shares climbed 0.4% to $38.47.
Elsewhere, mortgage insurers were sliding after
fell by 32.7% last month following the April expiration of the first-time homebuyers tax credit.
The PMI Group
slumped 4.8% to $3.34,
was down 2.1% to $8.02, and
was off 0.6% to $8.52.
-- Written by Robert Holmes in Boston
Follow Robert Holmes on
and become a fan of TheStreet.com on