Citi analyst says, "We rate the shares of Morgan Stanley Hold/Speculative Risk vs. Buy/Medium Risk previously. We lowered our rating to reflect our view that the brokers are not trading on fundamentals in the near-term due to continued turmoil in the marketplace. We continue to see meaningful upside in the earnings power of the institutional business driven by continued execution, a successful turnaround in the wealth management, and the asset management franchise. Furthermore, the diversity in Morgan Stanley's revenue streams provides upside with better downside protection vs. peers. However, given
the current market turmoil and uncertainty, we rate Morgan Stanley Hold/ Speculative Risk."
NOTE - Citi maintains a 'Hold' rating on Goldman Sachs (NYSE: GS), but lowers risk rating from High to Speculative.
Morgan Stanley (NYSE: MS) is an investment banking and global financial services corporation headquartered in New York City. It serves a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 33 countries around the world with 600 offices, with an approximate employee workforce of 45,000. The company reports US$779 billion as assets under its management.
The corporation, formed by ex-J.P. Morgan & Co. employees Henry S. Morgan, Harold Stanley and others, came into existence on September 16, 1935. In its first year the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management. The company found itself in the midst of a management crisis in the late 90s that saw it lose a lot of talent and competence and ultimately saw the firing of its then CEO Philip Purcell in 2005. Since then Morgan Stanley has been undergoing a massive restructuring which also involved job cuts across various of its businesses.
the current market turmoil and uncertainty, we rate Morgan Stanley Hold/ Speculative Risk."
NOTE - Citi maintains a 'Hold' rating on Goldman Sachs (NYSE: GS), but lowers risk rating from High to Speculative.
Also predicting funding problems for the major brokers and the financial system in general, banking analyst Dick Bove of Ladenburg Thalmann said Goldman and Morgan Stanley each may have to merge with a commercial bank to survive.
"We are in uncharted territory but it seems likely that all financial firms that extend credit will be pulling back on their credit lines," Bove said. "This will make it even harder for commercial firms and individuals to borrow money and it may result in demands for immediate debt repayment. This will harm the economy for an extended period."
Morgan Stanley (NYSE: MS) is an investment banking and global financial services corporation headquartered in New York City. It serves a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 33 countries around the world with 600 offices, with an approximate employee workforce of 45,000. The company reports US$779 billion as assets under its management.
The corporation, formed by ex-J.P. Morgan & Co. employees Henry S. Morgan, Harold Stanley and others, came into existence on September 16, 1935. In its first year the company operated with a 24% market share (US$1.1 billion) in public offerings and private placements. The main areas of business for the firm today are Global Wealth Management, Institutional Securities and Investment Management. The company found itself in the midst of a management crisis in the late 90s that saw it lose a lot of talent and competence and ultimately saw the firing of its then CEO Philip Purcell in 2005. Since then Morgan Stanley has been undergoing a massive restructuring which also involved job cuts across various of its businesses.
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