Moelis downgraded to Underweight from Overweight at Morgan Stanley

Morgan Stanley double downgraded Moelis (MC) to Underweight from Overweight with a price target of $70, down from $100. The firm views Moelis as a way to play the “bull case, which is now lower in probability.” The company has the highest earnings beta stock in the group, as it has the highest comp ratio among peers, the analyst tells investors in a research note. Given the “risk-off environment,” Morgan Stanley would have expected to see the shares underperform the group, but it is down 19%, de-rating less than others.