UPDATE: Morgan Stanley Downgrades SunTrust Banks as Credit/Expense Improvement is Largely Priced In

In a report published Wednesday, Morgan Stanley analyst Betsy L. Graseck downgraded the rating on SunTrust Banks (NYSE: STI ) from Overweight to Equal-Weight, but reiterated the $40.00 price target. In the report, Morgan Stanley noted, “Downgrading STI to Equal-weight as it is relatively less well positioned for our key