Filed under: Major movement, Analyst reports, Bad news, Industry, Morgan Stanley (MS), Options, Technical Analysis

Morgan Stanley (NYSE: MS) stock is falling this morning after an analyst at Punk, Ziegel & Co. reiterated the stock at “Sell” but lowered his price target for the stock to $43 from $49. He also lowered his first-quarter EPS estimate for MS to 75 cents from $1.70, and lowered his 2008 EPS estimate to $5.38 from $6.93. The analyst is the latest in a line of peers reducing expectations for the sector, but also added that Ben Bernanke’s warning about possible bank failures in Congressional testimony on Thursday was unnecessary, saying that he thinks “most banks are well capitalized by the standards established by Mr. Bernanke’s agency.” If you think this stock won’t be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MS.

After hitting a one-year high of $90.95 in July, the stock hit a one-year low of $40.76 last week. This morning, MS opened at $43.60. So far today the stock has hit a low of $43.05 and a high of $44.00. As of 11:00, MS is trading at $43.07, down $1.34 (-3.0%). The chart for MS looks bearish but improving slightly, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

Continue reading Morgan Stanley (MS) lower on analyst’s comments

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This entry was posted on Friday, February 29th, 2008 at 6:29 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.