UPDATE: Bank of America Reinstates Coverage of Morgan Stanley with a Neutral Rating and $20 PO

Bank of America Merrill Lynch has reinstated coverage of Morgan Stanley MS with a Neutral rating, and $20 price objective. Bank of America Merrill Lynch noted, "[We] are reinstating coverage on Morgan Stanley (MS) with a Neutral rating and a $20 price objective. Management has made significant progress in repositioning the firm and increasing the contribution from wealth management. However, we expect returns to remain below average (7.5% ROTE) and we see limited upside in the near term due to sub-par margins in wealth management, the potential to lose some share in FICC as the industry consolidates, and cost reductions that are taking more time than peers." Morgan Stanley closed at $16.63 on Wednesday.