BrightSphere downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded BrightSphere (BSIG) to Underweight from Equal Weight with a price target of $26, up from $23. The company’s “premium valuation” could face pressure as strategic actions and significant capital return are less likely under new management, the analyst tells investors in a research note. The firm believes BrightSphere’s new strategy is likely to be re-focused on organic growth, which may take time to drive value, and could require greater investment in the business, potentially limiting margin expansion and capital return.