UPDATE: Collins Stewart Upgrades Morgan Stanley to Buy, Lowers PT to $21

In a published report, Collins Stewart upgrades Morgan Stanley

to Buy from Hold as shares are now at half their tangible value and lowers its target by 30% to $21 per share on weaker global economic outlook. Collins Stewart comments, “The recent high volatility of MS's quarterly core earnings should begin to subside in 2012e even if that of reported earnings remains high, as we expect for much of the sector. The bank has made progress in strengthening its balance sheet, though its look-through Basle 2.5 and III CT1 ratios are adequate rather than formidable in an international context. MS should benefit over time from more stable cash capital-generation rates and from RWA mitigation.” MS closed at $14.20 per share on Friday, up 0.57 percent.