Morgan Stanley Sees Popular as Hinging on Direction of Economy

In a report published Friday, Morgan Stanley analyst Ken A. Zerbe reiterated an Underweight rating and $25.00 price target on

. In the report, Morgan Stanley noted, “During our Puerto Rico field trip, we met with Popular, EVERTEC, and former and current members of the commonwealth's administration. On Popular, we remain Underweight as we expect the economy to get worse before it gets better, driving higher provision expense and EPS below consensus estimates.” Popular closed on Thursday at $27.72.