0852 ET - As Morgan Stanley throttles back its overall outlook for America's large banks it turns bullish on Bank of America but lowers its stances on Goldman Sachs and Northern Trust. Bank of America is moved to overweight from equal-weight as the shares are trading at only 8 times Morgan Stanley's forecast for 2026 EPS and BofA has been the worst performing money center bank year-to-date. Goldman is the most exposed large-cap bank to investment banking revenue, which look to be most at risk within the financial sector to the threat of recession and deteriorating market conditions. That has Morgan Stanley lowering Goldman to equal-weight from overweight. Northern Trust is shifted to underweight from equal-weight, and Morgan Stanley notes the market pullback means Northern is less likely to makes progress toward its expense-to-trust fee ratio target of 105%-110%. (robb.stewart@wsj.com)

(END) Dow Jones Newswires

April 07, 2025 08:52 ET (12:52 GMT)

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