No major Wall Street bank has endured as difficult a start to 2016 as Morgan Stanley, with the investment bank's stock down more than 20 percent so far this year.
But one analyst has found a silver lining in a sea of red. The bank's exposure to energy is far less than that of most competitors, which means that if oil's swoon continues, Morgan Stanley is expected to face lower stock declines.
"We like [Morgan Stanley]," because it has "lower than peer energy exposure," David Konrad, head of U.S. banks research at Macquarie, wrote Tuesday.
Macquarie lifted its rating on Morgan Stanley shares from "neutral" to "outperform'' and assigned a price target of $33 a share. Currently, the stock trades at less than $25.
A separate report, from Goldman Sachs on Jan. 20 notes that at $4.8 billion, Morgan Stanley's "assumed energy loans" are smaller than competitors like Bank of America, Citigroup, Wells Fargo and JPMorgan Chase. This, in turn, means the amount of capital needed to build a reserve against bad paper would cost the bank much less than its peers.