Barclays on U.S. Brokers, Asset Managers and Banks: Moody's Downgrade: Morgan Stanley Fared Better Than Expected
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Rating Summary:
7 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Barclays on U.S. Brokers, Asset Managers and Banks: Moody's Downgrade: Morgan Stanley Fared Better Than Expected
Analyst, Roger A. Freeman, said, "Moody's announced ratings downgrades for a broad group of financial institutions; for our coverage specifically, Goldman Sachs (NYSE: GS) received a 2-notch downgrade (from A1 to A3) and Morgan Stanley (NYSE: MS) MS received a 2-notch downgrade (from A2 to Baa1). We do not believe that today's actions by Moody's will have a material impact on the ongoing business for GS or MS. We believe the outcome for GS and MS was roughly in line with, to slightly better than, market expectations and more than priced in at current levels, which admittedly is difficult to gauge given outside macro factors (Europe, economy). While a downgrade is clearly not a desired outcome, we believe the announcement today removes an overhang that has been weighing on the shares, which are trading at 0.7x and 0.4x our target BV in the case of GS and MS, respectively."
In Total, Bank of America Corporation (NYSE: BAC), Barclays plc (NYSE: BCS), Citigroup Inc. (NYSE: C), Credit Suisse Group AG (NYSE: CS), Goldman Sachs , HSBC Holdings plc (NYSE: HBC), JPMorgan Chase & Co. (NYSE: JPM), Morgan Stanley (NYSE: MS), Royal Bank of Scotland Group plc (NYSE: RBS) were all lowered at Moody's. However this report covers the firms that Barclays currently rates
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Analyst, Roger A. Freeman, said, "Moody's announced ratings downgrades for a broad group of financial institutions; for our coverage specifically, Goldman Sachs (NYSE: GS) received a 2-notch downgrade (from A1 to A3) and Morgan Stanley (NYSE: MS) MS received a 2-notch downgrade (from A2 to Baa1). We do not believe that today's actions by Moody's will have a material impact on the ongoing business for GS or MS. We believe the outcome for GS and MS was roughly in line with, to slightly better than, market expectations and more than priced in at current levels, which admittedly is difficult to gauge given outside macro factors (Europe, economy). While a downgrade is clearly not a desired outcome, we believe the announcement today removes an overhang that has been weighing on the shares, which are trading at 0.7x and 0.4x our target BV in the case of GS and MS, respectively."
In Total, Bank of America Corporation (NYSE: BAC), Barclays plc (NYSE: BCS), Citigroup Inc. (NYSE: C), Credit Suisse Group AG (NYSE: CS), Goldman Sachs , HSBC Holdings plc (NYSE: HBC), JPMorgan Chase & Co. (NYSE: JPM), Morgan Stanley (NYSE: MS), Royal Bank of Scotland Group plc (NYSE: RBS) were all lowered at Moody's. However this report covers the firms that Barclays currently rates
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