MS ups ABN AMRO to 'overweight' on restructuring opportunities

** Morgan Stanley upgrades Dutch bank ABN AMRO ABN to "overweight" from "equal-weight" and lifts its PT by 11% to EUR 31, as restructuring opens room to lift profitability

** The brokerage expects the bank to target a 55% cost-to-income ratio by 2028, noting that "success will come down to being able to automate and make the systems straight-through"

** MS highlights significant room for capital optimisation, particularly in the Corporate loan book, which has high risk-weighted asset density and could unlock capital for distribution

** Growth opportunities are also present, with strong Dutch deposit and loan growth expected to support net interest income, alongside a potential push for faster fee growth

** The upgrade timing is driven by new CEO Berard's recent comments suggesting management is "focused on the right levers" to improve profitability, the brokerage adds

** Out of 16 analysts covering the bank, eight rate it "strong buy"/"buy", five "hold" and three "strong sell"/"sell" - LSEG data