Morgan Stanley (MS, Financial) received an upgrade from Keefe Bruyette, which raised its rating to Outperform from Market Perform. Following a change in coverage, the firm also increased its price target for the stock to $160, up from the previous target of $127. This upgrade reflects Keefe Bruyette's confidence in the long-term structural advantages that large-cap banks like Morgan Stanley can harness through their scale.
The firm emphasizes a preference for business models that deliver high, predictable returns. This perspective forms the basis for the upgrade, highlighting what it considers the "superiority" of Morgan Stanley’s operations. Keefe Bruyette’s analysis positions Morgan Stanley as a strong performer in the banking sector, bolstered by its robust and reliable business framework.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Morgan Stanley (MS, Financial) is $137.75 with a high estimate of $160.00 and a low estimate of $110.00. The average target implies an downside of 2.39% from the current price of $141.13. More detailed estimate data can be found on the Morgan Stanley (MS) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Morgan Stanley's (MS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Morgan Stanley (MS, Financial) in one year is $125.38, suggesting a downside of 11.16% from the current price of $141.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Morgan Stanley (MS) Summary page.
MS Key Business Developments
Release Date: April 11, 2025
- Revenue: $17.7 billion.
- Earnings Per Share (EPS): $2.60.
- Return on Tangible Common Equity (ROTCE): 23%.
- Net New Assets in Wealth Management: $94 billion, bringing total to $7.7 trillion.
- Institutional Securities Revenue: $9 billion, up 28% year-over-year.
- Equity Revenue: $4.1 billion, up 45% year-over-year.
- Investment Banking Revenue: $1.6 billion.
- Fixed Income Underwriting Revenue: $677 million.
- Advisory Revenue: $563 million.
- Wealth Management Revenue: $7.3 billion.
- Wealth Management Margin: 27%.
- Asset Management Revenue: $4.4 billion, up 15% year-over-year.
- Total Assets Under Management (AUM): $1.6 trillion.
- Net Interest Income: $1.9 billion.
- Total Deposits: $375 billion.
- Common Equity Tier 1 (CET1) Ratio: 15.3%.
- Efficiency Ratio: 68%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Morgan Stanley (MS, Financial) reported a strong quarter with $17.7 billion in revenue and $2.60 in EPS, achieving a 23% return on tangible equity.
- The firm added $94 billion in net new assets, bringing total assets to $7.7 trillion, demonstrating strong client engagement and asset growth.
- Equities had a record quarter with over $4 billion in revenue, showcasing the strength of Morgan Stanley's institutional securities division.
- Morgan Stanley's CET1 ratio of 15.3% indicates a strong capital position, providing flexibility to support clients and shareholders.
- The wealth management division delivered robust results with $7.3 billion in revenue and a 27% margin, highlighting the firm's strong advisory capabilities.
Negative Points
- The economic outlook remains uncertain, with increased risks of recession and unpredictable trade policies affecting market conditions.
- Inflation continues to fluctuate, creating uncertainty in pricing along the supply chain, which could impact future financial performance.
- Some clients are deferring strategic activities due to geopolitical and trade uncertainties, potentially affecting future deal flow.
- The investment banking pipeline remains sensitive to market conditions, with potential delays in deal execution due to volatility.
- Morgan Stanley incurred $144 million in severance charges related to performance management and business alignment, impacting overall efficiency.
