Morgan Stanley Gets Lone Bearish Call as Analyst Mayo Cuts
- Wells Fargo analyst cuts stock to underweight from equalweight
- He argues the stock’s valuation compared to peers is too high
The Morgan Stanley headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Morgan Stanley got its first bearish call from an analyst this year, as Wells Fargo & Co.’s Mike Mayo lowered the stock to underweight from equalweight and said its valuation looks rich given pressure on some businesses.
Mayo said the bank’s wealth management unit faces headwinds and that its industry-leading valuation appears too high. The downgrade leaves him with the only sell-equivalent recommendation among more than two dozen analysts covering the stock, according to data compiled by Bloomberg.