UDPATE: Morgan Stanley Downgrades Hartford Financial Services to Equal-weight

Morgan Stanley has published a research report on Hartford Financial Services

and has downgraded the company from Overweight to Equal-weight based on the recent rallying of the stock and lingering capital questions. In the report, Morgan Stanley writes, "Given the substantial surge in the stock price, the company has meaningfully outperformed both the broader market and its peers. At its current level, we now see potential upside in the stock now falling out in the middle of the peer group with respect to upside. While we have a positive view on management comments regarding potential restructuring, we still believe their actions could take time, and may not necessarily be of the scope that some investors may be seeking. In aggregate, while we still see solid upside, a meaningful portion of the thesis for the stock has already played out." Morgan Stanley has removed its $22 price target on Hartford, which is currently trading up $1.38 from yesterday's 19.12 closing price.