In a note on the banking sector after the big sell-off, Goldman Sachs upgraded Morgan Stanley (MS) to buy from neutral, and upgraded U.S. Bancorp (USB) to neutral from sell. Goldman Sachs said Bank of America (BAC), Citi (C) and Morgan Stanley offer the most potential value. Morgan Stanley "offers an attractive entry point, given the market has already priced in >170% of our estimated recessionary risk, roughly twice as much as peers" while the market has "priced in 82% of a full recessionary scenario into USB's valuation, relative to roughly 70% for comparable peers, and we believe USB performs well in a downside scenario, given 1) lower interest rate sensitivity; 2) lower exposure to investment banking and market-based revenues; and 3) greater exposure to more defensive fee-based payments revenues."
-Steve Goldstein; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 13, 2020 05:46 ET (09:46 GMT)
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