PHILADELPHIA-Morgan Stanley cut its rating on the U.S. telecommunications industry to “cautious” from “in line,” according to a Reuters report.
The firm cited the recent strong stock performance and reduced earnings expectations compared with the rest of the market, according to Reuters.
Morgan Stanley cut Verizon Communications Inc.’s rating to “equal wieght” from “overweight” and raised BellSouth Corp.’s rating to “overweight” from “equal weight.” It also said it expects earnings among Baby Bells to decline next year.
