Morgan Stanley price target lowered to $90 from $100 at BofA

BofA lowered the firm’s price target on Morgan Stanley to $90 from $100 and keeps a Buy rating on the shares. Q3 ROTCE of 13.5% was better than the 13% consensus forecast, but “the lack of a clear path” to achieving management’s target without the help of a materially better revenue backdrop “likely contributed” to the stock’s post-earnings selloff given that the stock trades at “a healthy valuation premium to the group,” the analyst tells investors. The Street has underestimated net interest income pressure in the wealth management segment and the combination of continued negative revisions and a premium valuation “finally caught-up with stock,” the analyst argues.