UPDATE: International Strategy & Investment Group Reiterates Hold Rating, Lowers PT for Morgan Stanley

In a report published earlier today, International Strategy & Investment Group LLC reiterated its Hold rating for Morgan Stanley

, but lowered its price target from $18.00 to $15.00. Morgan Stanley went on to say “Our new $15 PT is based on 0.55x our 2012 YE TBV of $28 (given our 2012 & 2013 ROTCE outlook of only 3.9% and 6.1%). Also, given our weak outlook for ROTCE, we think it is reasonable for the stock to continue to trade significantly below TBV of $27.37. Furthermore, although MS has been preparing for a potential debt downgrade from Moody's to as low as Baa2, the downgrade (if implemented) should still have a negative impact on Morgan's future trading revenue. Thus, despite Morgan Stanley's seemingly inexpensive valuation, we maintain our Hold rating.” Morgan Stanley closed on Friday at $12.73.