Morgan Stanley, the biggest gainer among top US research firms in the latest Institutional Investor rankings, is seeing improved client traction in equity research amid renewed interest in equity business globally, its North America research head said.
Morgan Stanley, which boasts 8 top-ranked sector analysts in 2010 versus just one last year, has seen an increase in the percentage of commissions slated by its clients for research, Stephen Penwell, director of equity research for North America, told Reuters in a telephone interview.
The Institutional Investor earlier released its annual rankings - a popular gauge within the industry - for the top sell-side analysts covering equity markets in Asia, Europe and the Americas.
Morgan Stanley's Americas equity research ranking rose to 7th from 9th, behind J. P Morgan Chase & Co, Barclays and Bank of America Corp, but ahead of Citigroup, Deutsche Bank and Goldman Sachs.
"We are pleased with our progress and we hope this will be a small step in a multi-year return to a stronger ranking," Penwell said from his New York office.
The ranking improvement reflects Morgan Stanley's "laser-like focus" on client service, its differentiated product offerings and a team of experienced analysts, said Penwell, who joined Morgan Stanley in 1989 as a credit analyst and who has also headed the firm's fixed income research division.
Morgan Stanley, which covers more than 2,700 stocks globally and has more than 50 analysts following some 770 stocks in North America, has been busy hiring in the last two years to rebuild its coverage of technology and healthcare, among others.