NEW YORK (TheStreet) -- Morgan Stanley (MS) shares are down 2.1% to $34.23 on heavy volume Thursday after reports that Russian crude oil producer Rosneft is considering nixing a deal to buy Morgan Stanley's oil trading unit due to international sanctions against Russia, according to Reuters.
Sources told Reuters that the chances of the deal going through range from "possible" to "highly unlikely".
Morgan Stanley's oil trading unit is worth approximately between $300 million to $400 million according to analysts, but another stumbling block to the deal is that it requires billions of dollars of bank lines of credit to operate.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."