Keefe, Bruyette & Woods, a Stifel Financial Corp. (SF, Financial) investment banking company, took action on large U.S. banks on Tuesday.
Keefe, Bruyette & Woods analyst Brian Kleinhanzl has downgraded Morgan Stanley (MS, Financial) from outperform to market perform. The price target also decreased nearly 20% to $45 per share from $56 per share. The new price target of Keefe, Bruyette & Woods reflected a nearly 11% upside from the share price of $40.62 at close Tuesday. This price target will drag the average down at about $57.8 per share. Morgan Stanley has a recommendation rating of 2 out of 5 resulting from 27 surveys consisting of three strong buys, 14 buys, nine holds and one sell recommendation.
The share price has decreased 24% over the 52 weeks through Dec. 11. The stock is trading below the 50-, 100- and 200-day simple moving average lines.
The 52-week range is $40.18 to $59.38 per share. The stock has a market capitalization of $70.03 billion, a price-book ratio of 1 versus an industry median of 1.16 and a price-sales ratio of 1.85 compared to an industry median of 3.42. Morgan Stanley has a forward dividend yield of 2.95% versus an industry median of 3.03%.
The Peter Lynch chart is suggesting that Morgan Stanley is not expensive.
GuruFocus has assigned a financial strength rating of 4 out of 10 and a profitability & growth rating of 4 out of 10.
Keefe, Bruyette & Woods downgraded Bank of America (BAC, Financial) to market perform from outperform and lowered the price target by 14.7% to $29 from the previous $34. The price target represents nearly 18% growth from $24.58 at close Tuesday. Keefe, Bruyette & Woods’ revised price target will move the average price target, a mean of 29 estimates, down slightly to $34.12 per share. Morgan Stanley is seen as a stock to buy in the community of analysts. It has six strong buys, 16 buys, seven holds and only one sale recommendation as of December.
Following a 15% drop over the 52 weeks through Dec. 11 the share price is abundantly below the 50-, 100- and 200-day simple moving average. The stock has a market capitalization of $241.23 billion.
The 52-week range is $24.29 to $33.05. The price-book ratio is 1.01 versus an industry median of 1.24, the price-sales ratio is 2.87 compared to an industry median of 3.41 and the price-earnings ratio is 11.7 versus an industry median of 14.76. The forward dividend yield is 2.42% compared to an industry median of 2.93%.
According to the chart of Peter Lynch, the stock appears to be fairly priced.
GuruFocus assigned Bank of America a financial strength rating of 4 out of 10 and a profitability and growth rating of 4 out of 10.
Disclosure: I have no positions in any securities mentioned in this article.
