Bank of America upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Bank of America (BAC) to Overweight from Equal Weight with a price target of $47, down from $56. The firm says recent trade developments drive up recession risk. The analyst now expects slower GDP growth with rising economic uncertainty to push out the capital markets rebound, incrementally slow loan growth, and drive net charge offs across consumer and commercial loans slightly above its prior estimates. Morgan Stanley moved its large cap bank industry view from Attractive to In-Line. The analyst cites valuation for the upgrade of Bank of America. The stock has been the worst performing money center bank year-to-date, the analyst tells investors in a research note.