Erste Group Bank Downgrades Morgan Stanley (NYSE:MS) to Hold

Key Points

• Erste Group Bank downgraded Morgan Stanley from “Buy” to “Hold,” although broader analyst sentiment remains “Moderate Buy,” with an average price target of about $219.43.
• Morgan Stanley shares opened at $189.67, down 0.7%, below their 50-day and 200-day moving averages.
• The company recently beat quarterly expectations, reporting $3.46 in EPS and $21.35 billion in revenue, while also authorizing a $20 billion share-repurchase program covering up to 5.6% of outstanding shares.

Morgan Stanley (NYSE:MS - Get Free Report) was downgraded by analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday, MarketBeat.com reports.

Other equities analysts have also issued reports about the stock. Barclays increased their price target on shares of Morgan Stanley from $230.00 to $262.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. UBS Group lowered their target price on shares of Morgan Stanley from $260.00 to $236.00 and set a "buy" rating for the company in a report on Monday. Keefe, Bruyette & Woods increased their target price on shares of Morgan Stanley from $225.00 to $250.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. Oppenheimer lowered shares of Morgan Stanley from a "market perform" rating to an "underperform" rating in a research note on Tuesday, June 30th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and issued a $243.00 price target on shares of Morgan Stanley in a research report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Morgan Stanley currently has an average rating of "Moderate Buy" and an average price target of $219.43.

Morgan Stanley Stock Down 0.7%

Shares of NYSE MS opened at $189.67 on Thursday. The business has a 50-day moving average of $208.40 and a two-hundred day moving average of $202.66. The company has a market capitalization of $299.17 billion, a price-to-earnings ratio of 15.33, a price-to-earnings-growth ratio of 1.27 and a beta of 1.22. Morgan Stanley has a 1 year low of $151.84 and a 1 year high of $232.25. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.79 and a quick ratio of 0.79.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 EPS for the quarter, beating analysts' consensus estimates of $2.89 by $0.57. The business had revenue of $21.35 billion for the quarter, compared to the consensus estimate of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%.The business's revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.13 EPS. On average, analysts forecast that Morgan Stanley will post 12.68 earnings per share for the current fiscal year.

Morgan Stanley announced that its board has approved a stock repurchase plan on Wednesday, June 24th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 5.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vann Equity Management LLC increased its stake in Morgan Stanley by 3.0% in the third quarter. Vann Equity Management LLC now owns 10,653 shares of the financial services provider's stock valued at $2,004,000 after purchasing an additional 315 shares during the period. City Center Advisors LLC acquired a new stake in shares of Morgan Stanley during the third quarter worth about $247,000. Venture Visionary Partners LLC grew its holdings in shares of Morgan Stanley by 6.4% during the third quarter. Venture Visionary Partners LLC now owns 86,727 shares of the financial services provider's stock worth $16,312,000 after buying an additional 5,254 shares during the last quarter. Elevation Wealth Partners LLC grew its holdings in shares of Morgan Stanley by 42.4% during the third quarter. Elevation Wealth Partners LLC now owns 410 shares of the financial services provider's stock worth $77,000 after buying an additional 122 shares during the last quarter. Finally, Cooper Financial Group increased its position in Morgan Stanley by 12.2% in the 3rd quarter. Cooper Financial Group now owns 7,913 shares of the financial services provider's stock valued at $1,488,000 after acquiring an additional 858 shares during the period. 84.19% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Jim Cramer endorsed Morgan Stanley as a buy after its pullback, citing the company’s share-repurchase authorization and confidence in CEO Ted Pick’s strategy. Jim Cramer Backs Morgan Stanley After Its Pullback
• Positive Sentiment: Morgan Stanley is proposing to convert eight Eaton Vance municipal-bond mutual funds, with nearly $10 billion in assets, into ETFs. The move could improve product flexibility and strengthen the firm’s position in the growing ETF market, although shareholder approval is required. Morgan Stanley Plans Municipal Fund ETF Conversions
• Positive Sentiment: The firm was selected as a joint lead manager for the United Kingdom’s planned digitally native government bond, providing potential underwriting, distribution and investor-engagement revenue while expanding its digital-assets credentials. UK Names Banks for Digital Government Bond
• Neutral Sentiment: Analyst coverage remains broadly constructive, with Morgan Stanley receiving a “Moderate Buy” consensus and an average price target near $219.90, implying meaningful upside from the current trading level. However, the consensus includes a sizable number of hold ratings.
• Neutral Sentiment: Recent commentary highlights Morgan Stanley’s integrated investment-banking, wealth-management and asset-management model as a potential long-term earnings driver as deal activity recovers and client assets expand. Can Morgan Stanley’s Integrated Model Drive Long-Term Earnings Growth?
• Negative Sentiment: BMO Capital Markets lowered its Morgan Stanley price target from $250 to $215 while maintaining an “Outperform” rating. The reduced target signals more limited near-term upside and likely contributed to the stock’s weakness. BMO Cuts Morgan Stanley Price Target
• Negative Sentiment: A Zacks preview said Morgan Stanley does not currently have the combination of earnings and estimate-revision signals typically associated with a likely quarterly earnings beat, increasing investor caution before results. Morgan Stanley Earnings Expected to Grow

Morgan Stanley Company Profile

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.

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