Goldman Lowers Estimates For MS

Goldman Sachs has published a research report for Morgan Stanley & Co. MS with a company update. In the report, Goldman writes "We lower our 3Q10 EPS estimate for Morgan Stanley to $0.15 from $0.60, and our 2010-12 estimates to $2.60/3.00/3.30 from $3.10/3.30/3.70. The largest adjustment to our 3Q2010 estimates owe to muted activity in FICC and equities, in addition to $450 mn in DVA impact ($0.10 in EPS inclusive of a comp adjustment) as we estimate the spread on MS debt narrowed 17% intra-quarter." Goldman maintains its Neutral rating but lowers the price target to $30 from $31. Morgan Stanley & Co. closed yesterday at $24.50.