Chris Kotowski has been promoted to Oppenheimer analyst Morgan Stanley (NYSE:), and JPMorgan to Overweight.

MS and JPM have new price targets of $111.00 and $167.00, respectively.

“Given the large pullback in the stocks and modestly higher estimates, the average bank relative P/E multiple is now down to 52%. The declines in JPM, MS, and SIVB now leave them all with ~30%+ upside potential in our valuation model,” Kotowski said in a client note.

The analyst believes investors are “underestimating the qualitative difference in how credit risk is taken and managed today versus prior to the Great Financial Crisis.”

Kotowski claimed that they have no surprise earnings.

“Core preprovision earnings (PPE) for our composite of $35.8B were exactly in line with expectations, and NCOs of $3.1B bettered our $3.7B estimate. Although there were some catches (trading more strong, investment banking stronger), the overall results were consistent with our expectations. Forward guidance, however, improved, mainly on rate movements,” the analyst added.

By Senad Karaahmetovic