(Recasts; adds details) June 19 (Reuters) - Banc of America Securities analyst Michael Hecht lowered Morgan Stanley's (MS.N: Quote, Profile, Research) price target and fiscal 2008 earnings estimates, citing lower core results in fixed income sales and trading, and higher inventory marks on remaining exposures.

Hecht, who has a "buy" rating on the stock, cut his price target on the investment bank to $55 from $57 and lowered fiscal 2008 earnings view to $4.72 from $5.21.

Ladenburg Thalmann analyst Richard Bove, who maintained his "neutral" rating on the stock, raised fiscal 2008 earnings view to $4.80 from $4.77.

Morgan Stanley, the second-largest U.S. investment bank, reported income from continuing operations sank to $1.03 billion, or 95 cents a share, from $2.36 billion, or $2.45, a year earlier. Analysts had forecast earnings of 92 cents a share, according to Reuters Estimates.

"Despite the stronger than expected numbers Morgan Stanley did not have a good quarter," Bove said, adding that the company experienced declines in virtually all of its key businesses.

Bove said that Morgan may have solved its CDO related problems in the quarter but it still has a sizable sub-prime mortgage portfolio. (Reporting by Supantha Mukherjee in Bangalore; Editing by Jarshad Kakkrakandy)