UPDATE 1-JP Morgan ups targets on Goldman, Morgan Stanley

miércoles 10 de junio de 2009 09:46 CEST

June 10 (Reuters) - J. P. Morgan Securities said it continues to prefer investment banks over traditional credit banks globally, and raised its price targets on Goldman Sachs (GS.N: Cotización), Morgan Stanley (MS.N: Cotización) and six others.

"Besides our fixed income over equities preference, we seek gearing to private banking with limited credit risk," JP Morgan said and upgraded Deutsche Bank (DBKGn.DE: Cotización) to "neutral" from "underweight."

Fixed income remains the main earnings driver, not just in 2009, but more importantly in 2010 when fixed income revenues are expected to equal 2005-06 levels, the brokerage said.

Overall, with peak revenues in fixed income expected in 2009, staffing levels and cost are estimated to now be right-sized in 2010 rather than 2009, the brokerage added.

JP Morgan raised its price target on Goldman Sachs to $150 from $120 and on Morgan Stanley to $33 from $28.

Morgan Stanley and Goldman Sachs were among the 10 top U.S. banks that won clearance on Tuesday to repay $68 billion in taxpayer money given to them during the credit crisis. [ID:nN09364348]

For rating and price target changes, double-click [ID:nWNAB8222] (Reporting by Sandhya Menon in Bangalore; Editing by Himani Sarkar)