Commerce Bancshares upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Commerce Bancshares (CBSH) to Equal Weight from Underweight with a price target of $58, down from $66. The firm moved its midcap bank industry view from Attractive to In-line, saying “higher and faster than expected” tariffs raise recession risks, will weigh on loan growth and in-turn, forward earnings and multiples. The group is “cheap,” but weaker for longer loan growth and inverted yield curve limit upside catalysts, the analyst tells investors in a research note. However, Morgan Stanley views Commerce Bancshares as a “more defensive play for a more challenging environment.”