Morgan Stanley Downgrades Northern Trust and Citigroup; Less Bullish on U.S. Banks (NTRS, C)
Analysts at Morgan Stanley on Monday cut their rating on major U.S. banking stocks Northern Trust Corporation ( NTRS ) and Citigroup Inc. ( C ).
The firm said it downgraded NTRS from "Equal Weight" to Underweight as part of a larger call on U.S. large cap banks. Morgan Stanley lowered its rating on the sector to "In-Line" amid worries about the situation in Europe as well as the potential for slower U.S. growth in 2013.
Meanwhile, the analyst lowered its rating on C from "Overweight" to "Equalweight." The stock was down nearly 48% since Morgan Stanley upgraded it to "Overweight" back in May.
Citigroup shares rose more than 5% in premarket trading Monday, while Northern Trust shares were unchanged.
The Bottom Line
Shares of Northern Trust ( NTRS ) have a 3.19% dividend yield, based on Friday's closing stock price of $35.08. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $40 price level. Shares of Citigroup ( C ) have a .17% dividend yield, based on Friday's closing stock price of $23.51. The stock has technical support in the $18-$21 price area. If the shares can firm up, we see overhead resistance around the $26-$28 price level.
Northern Trust Corporation ( NTRS ) and Citigroup Inc. ( C ) are not recommended at this time.
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