Commerce Bancshares upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Commerce Bancshares to Equal Weight from Underweight with a price target of $49, up from $48. With the stock’s relative valuation having normalized to a five-times premium, in line with its five-year average, Commerce Bancshares’ risk/reward skew is more neutral, the analyst tells investors in a research note. The firm says Commerce’s “more granular” deposit base makes it more confident in the bank’s net interest income outlook in a higher-for longer rate environment.