NEW YORK (TheStreet) -- Morgan Stanley (MS) shares are down 0.37% to $34.89 on Wednesday after being downgraded to "neutral" from "overweight" by analysts at JPMorgan who kept the price target at $34.
The firm believes that the company will not meet its return-on-equity target despite its plan to restructure its fixed income and commodities unit.
"With wealth management earnings growing, we believe the pressure has lessened for management to shrink fixed income, currencies and commodities further, with the business in our estimates consuming about 45 percent of group risk-weighted assets and not generating cost-of-equity returns in 2016," said the firm.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates MORGAN STANLEY as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MORGAN STANLEY (MS) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."