National Australia Bank downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Richard Wiles downgraded National Australia Bank (NABZY) to Equal Weight from Overweight with a price target of A$34.80, down from A$37.40. While National Australia Bank has a good business banking franchise and a solid recent track record on costs, the firm sees higher execution risk due to management changes, margin pressure from competition and a reduced likelihood of further capital management following completion of its on-market buyback, the analyst tells investors.