M&T Bank edges up as Morgan Stanley upgrades to 'overweight'
MTB•Morgan Stanley turns positive on M&T Bank
Shares of lender M&T Bank were marginally up after Morgan Stanley upgraded the stock to "overweight" from "equal weight".
The brokerage said, "We see upside to street net interest income and buyback estimates as loan growth accelerates".
Morgan Stanley added that loan growth should accelerate over the next several quarters as commercial real estate gains momentum.
Higher price target and possible catalysts
Morgan Stanley also raised its price target to $304 from $253, implying 26.8% upside to the stock's last close.
The brokerage sees several positive catalysts ahead, including a beat-and-raise cadence on net interest income, higher buybacks as M&T manages capital lower and a potential M&A.
Six of 20 analysts rate the stock "strong buy" or "buy", 13 rate it "hold" and one rates it "sell"; their median price target is $255, according to data compiled by LSEG.
Including the session's move, the stock is up 19.6% year to date.
