UPDATE: Morgan Stanley Lowers PT to $32 on Wells Fargo & Co

A report from Morgan Stanley reiterates its Overweight rating and lowers its price target from $43 to $32 on Wells Fargo & Co (NYSE: WFC).

In the report, Morgan Stanley writes, “WFC continued buying back stock in 3Q11 with more to come in 4Q11. Ending share count declined just -0.1% q/q in 3Q. Management estimates Basel 3 common tier 1 of 7.4%, which is flat with their 2Q11 estimate despite higher retained earnings due to new interpretation of the rules."

WFC closed yesterday at $24.42.