Cullen/Frost downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Cullen/Frost to Underweight from Equal Weight with a price target of $121, up from $112. The firm cites the bank’s “fuller valuation” and higher asset sensitivity than peers for the downgrade. Cullen/Frost trades at the higher end of the midcap bank universe and a lower discount to its historical average than peers, leaving limited room for price appreciation as the environment improves, the analyst tells investors in a research note.