Bread Financial downgraded to Underweight from Overweight at Morgan Stanley

Morgan Stanley downgraded Bread Financial (BFH) to Underweight from Overweight with a price target of $33, down from $76. The firm says Bread is the single-most-exposed name in its coverage universe to a recession. At 42% of loans, Bread’s borrower mix remains heavily nonprime, exposed to pressures on the low-income consumer, the analyst tells investors in a research note. Morgan Stanley adds the company’s’ loan growth has been “sluggish” as retail spend, particularly on big-ticket purchases, has slowed over the past year.