Morgan Stanley: Here’s Your Buying Opportunity

Analysts have been busy downgrading bank stocks this year, as many argued that the run up in shares of companies like Goldman Sachs ( GS ), Morgan Stanley ( MS ), and JPMorgan Chase ( JPM ) soared following Donald J. Trump's November election win. But could the tide be turning? It just might be. The SPDR S&P Bank ETF ( KBE ) has dropped 5.8% during the past month of trading, putting it down 2.2% on the year, while Morgan Stanley has dropped 7%, Goldman Sachs has tumbled 7.6%, and JPMorgan has slipped 2.2%. And now, we're seeing signs that the selloff has made banks more attractive in the eyes of some analysts. Deutsche Bank's Matt O'Connor and team, for instance, upgraded Morgan Stanley to Buy from Hold last night, where it joins Goldman Sachs and JPMorgan. They explain why: