Deutsche Bank Maintains a 'Buy' on Morgan Stanley (MS); Reducing EPS Estimates to Account for MUFG Convert

Deutsche Bank maintains a 'Buy' on Morgan Stanley (NYSE: MS).

Deutsche analyst said, "Morgan Stanley and Mitsubishi UFJ Financial Group (MUFG) completed the conversion of MUFG's preferred stake in Morgan Stanley to Morgan Stanley common equity on June 30, 2011. The conversion will result in a net hit to 2Q earnings of $1.5B, or $1.04 per share ($1.7B or $1.17 per share charge offset by $0.2B or $0.13 per share dividend benefit). As a result, we are reducing our 2Q11 GAAP EPS estimate to ?$0.66 from $0.38, and our 2011 EPS estimate to $0.92 from $1.96."

For more ratings news on Morgan Stanley click here and for the rating history of Morgan Stanley click here.

Shares of Morgan Stanley closed at $21.22 yesterday.

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