HSBC downgrades Morgan Stanley to Hold, sees limited upside

HSBC downgraded Morgan Stanley (MS) to Hold from Buy with a price target of $131, up from $128. The firm noted that shares have rallied substantially recently and no longer offer an attractive risk-reward profile. The analyst added that recent outperformance leaves limited upside, and that the “bar has risen.” Delivering consistently good net new asset flows and healthy investment banking fee growth on tougher comparables have become more important, the analyst tells investors in a research note.