Oppenheimer Downgrades Morgan Stanley (MS) to Underperform
Oppenheimer analyst Chris Kotowski downgraded Morgan Stanley (NYSE: MS) from Perform to Underperform.
The analyst comments "That said, we do still think that both the commercial and the investment banking businesses are still relatively mature, cyclical and that these companies are still relatively heavily levered and that sooner or later another fear cycle will emerge and that this is clearly not priced into the stocks at these valuations. Thus, we’re going to err on the side of being fearful when people are greedy and are downgrading BAC and C from Outperform to Perform and GS and MS from Perform to Underperform. We recommend that investors re-deploy the proceeds from any sales in the Alternative asset managers, particularly ARES, BX, and KKR, where fear clearly rules the day and the managers balance sheets are not levered as the traditional intermediaries are."
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Shares of Morgan Stanley closed at $211.72 yesterday.