Societe Generale: added to Morgan Stanley preferred list.

(CercleFinance.com) - This Wednesday Morgan Stanley added the Societe Generale stock to its "preferred list", saying the French bank is "catching up with the peloton.
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The brokerage firm - which has an "overweight" rating on the shares - says it sees a path to an over 10% return on tangible equity (RoTE), citing retail turnaround, reduced funding drag and operating leverage in wholesale.

"French retail recovery will take time, but at 0.9x 2017 price to tangible book value (PTBV) we think it is more than discounted," Morgan Stanley said.

As a result, the broker raised its target price from 51.9 euros to 59.8 euros on the shares.

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