In a note on the banking sector after the big sell-off, 7073彩票注册man Sachs upgraded Morgan Stanley
to buy from neutral, and upgraded U.S. Bancorp
to neutral from sell. 7073彩票注册man Sachs said Bank of America
and Morgan Stanley offer the most potential value. Morgan Stanley "offers an attractive entry point, given the market has already priced in >170% of our estimated recessionary risk, roughly twice as much as peers" while the market has "priced in 82% of a full recessionary scenario into USB's valuation, relative to roughly 70% for comparable peers, and we believe USB performs well in a downside scenario, given 1) lower interest rate sensitivity; 2) lower exposure to investment banking and market-based revenues; and 3) greater exposure to more defensive fee-based payments revenues."