State Street price target raised to $88 from $83 at Morgan Stanley

Morgan Stanley raised the firm’s price target on State Street to $88 from $83 and keeps an Equal Weight rating on the shares. The analyst upgraded the large cap bank group to Attractive, saying it looks like Basel endgame “will be lightened.” This opens the door for a significant increase in buybacks, as large cap banks have the highest excess capital levels ever, at a time when the capital markets are rebounding, the analyst tells investors in a research note.