Morgan Stanley (NYSE:MS) PT Boosted on Improved Capital Level Clarity

Now that there is more clarity on capital levels of Morgan Stanley (NYSE:MS), FBR feels they were able to give the giant financial institution a boost in their price target.

FBR says, "We reiterate our rating on shares of MS and are increasing our price target to reflect improved clarity on capital levels in a Basel III world and what we view as promising headway toward improving segment operations. Our thesis remains intact, as Morgan Stanley realizes the benefits of improving retail and institutional client activity levels. Additionally, we are still in the camp that positive operating leverage is an opportunity that is more pronounced for Morgan Stanley than peers given the large private client group. We expect this thesis to play out as market conditions improve, and we are encouraged by some early signs of improvement in 4Q10."

FBR Capital maintains an "Outperform" rating on Morgan Stanley (MS), which was trading at $30.16, gaining $1.14, or 3.93, as of 1:01 PM EST. FBR raised their price target on Morgan Stanley from $32 to $34.