Odeon Capital analyst Richard Bove on Wednesday upgraded Morgan Stanley MS to buy from hold on growth in its wealth management unit and an uptick in investment banking. Morgan Stanley will benefit from U.S. Federal Reserve policies that have not constrained the money supply as much as anticipated despite interest rate hikes, Bove said. “Morgan Stanley knows how to grow in an environment like this,” Bove said. “Thus, earnings could be better than expected….The company’s debt and preferred offering are attractive.” On the down side, Bove said Morgan Stanley’s failure to replace CEO James Gorman after he said he would step down “is just bad management practice.” Morgan Stanley stock is up 0.5% in premarket trades.
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