UPDATE: Morgan Stanley Initiates BancorpSouth with Equal-Weight; Slow Recovery Priced In

Morgan Stanley initiates its coverage on BancorpSouth

with an Equal-weight rating and a $13 price target. Morgan Stanley says, "BXS has shown solid progress in reducing its lingering credit problems, but we see limited potential for multiple expansion or improved earnings given the expected decline in pretax pre-provision earnings. We initiate at Equal-weight with a $13 price target." BXS closed at $13.24 on Friday.