Meredith Whitney Cuts Forecast for Morgan Stanley; Shares Lower
Noted bank analyst Meredith Whitney slashed her first quarter earnings estimate for Morgan Stanley Thursday, knocking estimated earnings per share to 35 cents from 59 cents.
Reasons for the cut remained unclear; a copy of the note obtained by CNBC offered little supporting evidence for Whitney's revised conviction on the mega-bank.
Shares of Morgan Stanley traded at session lows on word of the Whitney report, however, shares pared some losses midday and were last slightly lower in New York trade.
Whitney is best known for an uber-bearish call on Citigroup in October 2007. Now running her own advisory firm, she has taken heat in recent months for similar doomsday predictions for the municipal bond market.
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