Morgan Stanley downgrades these regional bank stocks, says a short squeeze could be ahead

Analyst Manan Gosalia downgraded Commerce Bancshares and Prosperity Bancshares to underweight from equal weight. He lowered his price targets by a median of 5% on weaker multiples. Commerce Bancshares' new price target of $48 implies shares declining 3.5% from Monday's close. Meanwhile, the analysts' new price target of $60 per share for Prosperity Bancshares implies a 1% loss from where shares closed on Monday.

However, stocks tend to fall sharply after a squeeze. He also referred to the downgrades as "relative valuation calls, given how much the rest of the group has de-rated." Gosalia noted that Commerce and Prosperity Bancshares are the most expensive mid-cap banks covered by Morgan Stanley, trading at more than 15 and 12 times higher than their 2024 earnings per share forward estimates, respectively. Meanwhile, peer banks are trading just seven times higher, said Gosalia.

مصر أحدث الأخبار, مصر عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Tech stocks could tumble as earnings recession sets in: Morgan StanleyTech stocks aren't immune to economic pain - and could be the next domino to fall, Morgan Stanley advisor says
مصدر: BusinessInsider - 🏆 729. / 51 اقرأ أكثر »

Morgan Stanley weighs cutting 7% of Asia investment bank jobs-sourceMorgan Stanley is considering a 7% cut in its Asia-Pacific investment banking workforce, or about 40 jobs, according to a source with direct knowledge of the matter.
مصدر: Reuters - 🏆 2. / 97 اقرأ أكثر »

Morgan Stanley weighs cutting 7% of Asia investment bank jobs-source By Reuters*MORGAN STANLEY WEIGHS CUTTING 7% OF ASIA INVESTMENT BANK JOBS DUE TO COST-SAVING $MS
مصدر: Investingcom - 🏆 450. / 53 اقرأ أكثر »