Northern Trust downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Betsy Graseck downgraded Northern Trust (NTRS) to Underweight from Equal Weight with a price target of $95, down from $132. 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 market pullback means less likelihood that Northern Trust makes progress towards expense-to-trust fee ratio of 105%-110%, the analyst tells investors in a research note. The firm says the bank’s commitment to maintaining above-peer capital ratios means less upside from buybacks.