Stock Rating System
Morgan Stanley Investment Research Stock Rating System
Stock Ratings
- Overweight (O): The stock’s total return is expected to exceed the average total return of the analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12–18 months.
- Equal-weight (E): The stock’s total return is expected to be in line with the average total return of the analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12–18 months.
- Underweight (U): The stock’s total return is expected to be below the average total return of the analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12–18 months.
- Not-Rated (NR): Currently the analyst does not have adequate conviction about the stock’s total return relative to the average total return of the analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12–18 months.
- NAV, NA, or ++ appearing for Morgan Stanley Research indicates that the rating for this company is not available because of a Morgan Stanley policy.
Industry Views
- Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12–18 months to be attractive vs. the relevant broad market benchmark named on the cover of the corresponding report.
- In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12–18 months to be in line with the relevant broad market benchmark named on the cover of the corresponding report.
- Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12–18 months with caution vs. the relevant broad market benchmark named on the cover of the corresponding report.
Providers’ ratings scales also vary
Not only should you be aware of the different points of view among the firms, but also the different rating scales these firms use. To reduce some of the confusion that may result from multiple ratings systems, each of the third-party independent research providers and Morgan Stanley has agreed to display a Buy (1), Hold (2), or Sell (3) stock rating (comparable to the rating scale used by Citigroup). This rating will be in addition to their own proprietary ratings that they will continue to display on their research reports. However, on your account statements, trade confirmations and on this website, you'll see the ratings of Citigroup, the third-party independent research, providers, and Morgan Stanley displayed using the comparable scale. For Morgan Stanley’s “Industry Views”, please refer to individual reports on stocks.
| Morgan Stanley Rating | Displayed as: |
|---|---|
| Overweight | 1 - Buy |
| Equal-weight | 2 - Hold |
| Underweight | 3 - Sell |
For more information, please contact your Financial Advisor.