Morgan Stanley upgraded to Equal Weight from Underweight at Wells Fargo

Wells Fargo upgraded Morgan Stanley (MS) to Equal Weight from Underweight with a price target of $142, up from $107, as part of a broader research note on Large-Cap banks. The firm is citing the expected benefit of the U.S. elections driving a “15-year regulatory paradigm shift” and its upward bias to EPS estimates along with anticipated greater flexibility by banks to return and deploy capital and for a bank merger resurgence, the analyst tells investors in a research note. As one of the top three global capital markets players with strength in equities and fixed income, Morgan Stanley should benefit as much as any bank from a rebound in capital markets activity, the firm added.