UMB Financial initiated with an Overweight at Morgan Stanley

Morgan Stanley initiated coverage of UMB Financial (UMBF) with an Overweight rating and $156 price target which implies 30% upside. The firm sees UMB as one of the best ways to play lower interest rates among the mid-cap banks. The bank’s peer-leading net interest margin expansion combined with above-peer fee growth drives the Overweight thesis, the analyst tells investors in a research note. Morgan Stanley says UMB’s “differentiated” deposit base will drive peer-leading net interest margin expansion over the next several quarters as rates come down.