Wall Street Cuts Price Targets on Morgan Stanley, Bank of America

Wells Fargo cut its price target on Morgan Stanley, citing caution around capital markets activity, the trading and dealmaking business that has been a key profit driver for the bank. RBC Capital separately lowered its own Morgan Stanley target, citing valuation concerns rather than a change in the underlying business outlook. RBC also cut its price target on Bank of America to $60. The overlapping moves on Morgan Stanley from two different firms suggest some sell-side caution is building around the bigger banks' trading and investment banking revenue heading into their next earnings reports. Neither firm's prior price targets or specific new figures for Morgan Stanley were disclosed, limiting how much can be read into the size of the cuts. It is also not yet clear whether other analysts are following with similar revisions across the sector.