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Fly News Breaks for March 4, 2020
MS
Mar 4, 2020 | 06:18 EDT
Citi analyst Keith Horowitz upgraded Morgan Stanley to Buy from Neutral with a price target of $57, down from $60. The stock closed Tuesday down 4%, or $2.08, to $44.40. The 15% pullback in the bank stocks since February 20 is warranted as business models are likely to be impaired from prolonged low interest rates, Horowitz tells investors in a research note. However, Morgan Stanley is down a similar amount to other regionals, yet the company's impact to longer term returns is slightly less than 100 basis points versus 200 basis points or more at other banks which are more dependent on low cost deposits, contends the analyst. Trading at 1.1 times tangible book value, Morgan Stanley shares currently offer a "very attractive entry point for a high quality franchise."