Wall Street’s Latest Calls: An Update on Our Stocks

Morgan Stanley’s Rating Cut to Hold by HSBC: Wall Street’s Insight

HSBC recently downgraded Morgan Stanley’s rating from buy to hold, citing weaker guidance for the firm’s wealth management business. The analysts at HSBC have cut their earnings estimates for Morgan Stanley, despite its rising share price. This has resulted in a material increase in the PE (price-to-earnings) ratio, signaling a softening outlook for wealth management revenue. The downgrade comes ahead of Morgan Stanley’s upcoming earnings release on January 16th.