Morgan Stanley (MS) - Bear of the Day

Based on the headwinds in most of Morgan Stanley's (MS) businesses and given concerns related to its financials being affected by the Dodd-Frank Act in the near term as well as the implementation of Basel III in the long term, we are downgrading our recommendation on the shares to Underperform.

Debt-related credit spreads had an adverse effect on third quarter revenues. Lower net interest income and weak performance of most of its business lines were also among the negatives.

We believe the restructuring initiatives taken by the company to reduce balance sheet risk will improve its valuation over time. Nevertheless, the company is facing major headwinds to stay competitive and regain its industry-leading position.
 
MORGAN STANLEY (MS): Free Stock Analysis Report
 
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