UPDATE: Morgan Stanley Upgrades East West Bancorp to Overweight

Morgan Stanley is out with its report today on East West Bancorp

, upgrading EWBC from Equal-weight to Overweight. In a note to clients, Morgan Stanley writes, "We are upgrading EWBC to OW. Its valuation does not reflect its much stronger-than-average expected loan growth, which should drive a premium multiple. The stock is trading 18% below the group on 2012e EPS; we see 33% upside if it traded in line with high-growth banks." At the time of posting, shares of EWBC were trading at $18.74, up 0.70% from Wednesday's close.