Goldman and Morgan Stanley stocks have been big winners. Jefferies says keeps buying

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The expansion into less cyclical business by Goldman Sachs and Morgan Stanley make their shares attractive even after recent outperformance, according to investment firm Jefferies.

Bank stocks have had a strong start to 2021, and Morgan Stanley and Goldman are no exception. Their respective shares have risen 35% and 46% year to date.

Jefferies analyst Daniel Fannon initiated coverage of both stocks with buy ratings, saying in notes to clients on Wednesday that the banks were growing more durable revenue streams that should make them more attractive to investors.

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