Morgan Stanley (NYSE:MS) received a downgrade from Buy to Hold by Erste Group analysts, citing weaker revenue and profit growth prospects for 2025.

The firm expects significantly slower earnings expansion compared to the prior year, with investment banking facing headwinds due to rising uncertainty from U.S. tariff policies and a softening U.S. economy. Additionally, interest-based income growth is expected to be constrained, with higher loan loss provisions likely weighing on profitability.

The analysts also pointed to Morgan Stanley’s valuation premium, noting that the stock trades above the sector average in terms of price-to-earnings ratio, limiting its medium-term upside potential.