Gains for Morgan Stanley will be harder to come by, according to Citi. Analyst Keith Horowitz downgraded the bank stock to neutral from buy. He kept his price target at $100, which implies the stock will rise just 3% from where it closed Tuesday. “In our view, the market is pricing in best in class returns and we do not see significant relative upside,” Horowitz said in a Tuesday note. Horowitz noted that 2023 will be a tough year for all banks given compression in net interest margins, which find the difference between income generated from interest and the interest paid from the banks to lenders, and potential credit concerns. He also noted that Morgan Stanley’s high valuation relative to its peers as a downside catalyst for the stock. Horowitz added that upward revisions to net interest income could be offset by potentially higher expenses and an increase in share count. Other headwinds for banks include a potential recession, another down year across markets and greater regulation, Citi said. Still, the analyst noted that Morgan Stanley is one of the best positioned banks heading in to the year because it has a strong growth engine, low credit risk and good optionality on revenue from its investment banking unit. That could lead to better revisions to per-share expectations compared with competitors, he said. The downgrade comes a day after Morgan Stanley reported blockbuster fourth-quarter results. The company’s earnings and revenue beat analyst expectations thanks in large part to a record quarter for its wealth management division . — CNBC’s Michael Bloom contributed to this report.