UPDATE: Bank of America Upgrades Morgan Stanley to Buy, Reiterates $35 PT on Attractive Risk/Reward

In a report published Tuesday, Bank of America analyst Michael Carrier upgraded the rating on

from Neutral to Buy, and reiterated the $35.00 price target. In the report, Bank of America noted, “We are upgrading Morgan Stanley (MS) to Buy from Neutral, based on a more attractive risk/reward given the recent pullback; earnings upside in wealth management, equities, and investment banking; and longer term upside from increasing efficiencies and capital return. While there are still clearly headwinds for MS and the industry given the numerous regulatory changes, with the stock trading below year-end TBV and expectations of ROTEs moving to 10/11% in 2015/2016, we view the risk/reward as attractive. Our rating is now Buy & our PO remains $35.” Morgan Stanley closed on Monday at $28.47.