Shares of Morgan Stanley Dean Witter fell for a third consecutive session Wednesday, shedding 4.65% as analyst Amy S. Butte of Bear, Stearns & Co. downgraded the stock to "neutral" from "attractive."

Ms. Butte announced last week that she would review the ratings of all the investment banks she covers but on Wednesday reiterated her "buy" rating for Lehman Brothers Holdings Inc. and her "attractive" rating for Goldman Sachs Group Inc. Her ratings for Merrill Lynch & Co. remained at "attractive," for Legg Mason Inc. at "buy," and for Friedman Billings Ramsey Group at "neutral." Morgan Stanley's shares had fallen to $76.625 by Tuesday from their all-time high of $109.375 on Sept. 11. Even so, Ms. Butte wrote in her research note that she was downgrading the company because of its market valuation, an indication that she still considers it not cheap enough to buy. On Wednesday, Morgan Stanley closed at $73.0625, down $3.5625.

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