UPDATE: Morgan Stanley Changes Midcap Bank Ratings

According to a research report published today, Morgan Stanley has changed the ratings on three midcap banks. Morgan Stanley commented in the report, “We are incrementally more cautious on the midcap banks following the post-stress test rally and we disagree that the rise in the 10-year Treasury justifies higher valuation multiples.” Morgan Stanley maintained the following in the report: Associated Banc Corp.

Downgraded to Underweight, closed yesterday at $14.52. First Horizon National Corp.

Downgraded to Equal-weight, closed yesterday at $31.67. First Republic Bank

Upgraded to Overweight, closed yesterday at $31.67.