Steven Chubak and team at Nomura have been a bunch of busy beavers. In addition to launching coverage of BofA and Citi with Buys, they initiate Morgan Stanley (MS) and JPMorgan (JPM) at Neutral with $34 and $61 price targets, respectively.
"We are constructive on the long-term earnings outlook, as MS should exceed margin guidance in Wealth Management, and appears on track to achieve $1.6B of targeted savings ... However, MS is the most negatively impacted by the recently-proposed leverage rules, and its weaker position suggests capital return will likely be constrained."
"We like JPM's earnings profile/mix, but the current capital shortfall should dampen near-term return prospects ... Pressures in FICC and Mortgage Banking should also limit revenue growth, with few opportunities on the cost side given already best-in-class efficiency ratios."
Earlier: Coverage of Citi and BofA Buy ratings.
See also: Goldman started at Neutral.