D.A. Davidson analyst David Konrad initiated coverage of Morgan Stanley and Goldman Sachs Group Inc. at "buy."
Konrad placed a price target of $62 on Morgan Stanley's stock and $272 on Goldman Sachs' stock.
The analyst wrote that Morgan Stanley's business mix, improving returns and potential to unlock trapped capital make it his "top idea." Konrad believes that wealth management is a driver to a unique business mix, and expects wealth management and investment management to combine for 53% of total revenues in 2021.
For Goldman Sachs, the analyst noted the recent announcement about the restructuring of its business segments. "In our view, this structure better aligns [Goldman Sachs] with their new strategies and better aligns lending closer to the segment driving the loan production," the analyst said.