UPDATE: Morgan Stanley Downgrades Wells Fargo Company to Equal-Weight

Morgan Stanley reduced its rating on Wells Fargo Company

from Overweight to Equal-weight Morgan Stanley noted, "Stock approaching fair value… currently trades at 1.1x 2014e P/B on 12% ROE. WFC also has less room to improve its expense ratio versus less efficient peers. We are below consensus on NIM, and expect further downside as securities portfolio re-prices." Wells Fargo Company closed at $34.96 on Tuesday.