Morgan Stanley (NYSE:MS) Given New $198.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised Morgan Stanley’s price target from $195 to $198 while maintaining a “neutral” rating, implying approximately 8.09% upside from the prior close.
• Morgan Stanley exceeded quarterly expectations, reporting $3.03 in EPS versus $2.93 expected and $20.34 billion in revenue versus $19.93 billion forecast; revenue rose 11.6% year over year.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and average price target of $214.86, while the company’s $20 billion share-repurchase authorization could support shareholders.

Morgan Stanley (NYSE:MS - Get Free Report) had its price target lifted by equities researchers at JPMorgan Chase & Co. from $195.00 to $198.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a "neutral" rating on the financial services provider's stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 8.09% from the stock's previous close.

Other research analysts have also issued research reports about the company. Barclays raised their price objective on Morgan Stanley from $230.00 to $262.00 and gave the company an "overweight" rating in a research report on Thursday, July 16th. BMO Capital Markets lowered their price objective on Morgan Stanley from $250.00 to $215.00 and set an "outperform" rating for the company in a research note on Tuesday, October 6th. Rothschild & Co Redburn boosted their target price on Morgan Stanley from $183.00 to $195.00 and gave the stock a "neutral" rating in a report on Thursday, June 25th. Wells Fargo & Company cut their target price on Morgan Stanley from $223.00 to $217.00 and set an "equal weight" rating on the stock in a research note on Thursday. Finally, Weiss Ratings raised Morgan Stanley from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Morgan Stanley currently has a consensus rating of "Moderate Buy" and a consensus price target of $214.86.

Morgan Stanley Stock Up 0.6%

MS traded up $1.08 during midday trading on Friday, reaching $183.18. The company's stock had a trading volume of 1,558,824 shares, compared to its average volume of 6,170,043. Morgan Stanley has a 1 year low of $152.80 and a 1 year high of $232.25. The stock's 50-day moving average is $205.11 and its 200-day moving average is $203.64. The firm has a market capitalization of $288.92 billion, a price-to-earnings ratio of 14.53, a PEG ratio of 1.21 and a beta of 1.22. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65.

Morgan Stanley (NYSE:MS - Get Free Report) last released its earnings results on Wednesday, October 14th. The financial services provider reported $3.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.10. Morgan Stanley had a net margin of 15.63% and a return on equity of 19.40%. The firm had revenue of $20.34 billion during the quarter, compared to analyst estimates of $19.93 billion. During the same period last year, the business earned $2.80 earnings per share. The business's revenue was up 11.6% on a year-over-year basis. As a group, research analysts expect that Morgan Stanley will post 12.66 EPS for the current year.

Morgan Stanley declared that its Board of Directors has authorized a share repurchase program on Wednesday, June 24th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the financial services provider to reacquire up to 5.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Morgan Stanley

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MS. Crown Wealth Group LLC lifted its holdings in Morgan Stanley by 3.2% in the second quarter. Crown Wealth Group LLC now owns 1,532 shares of the financial services provider's stock valued at $320,000 after acquiring an additional 48 shares during the period. Hughes Financial Services LLC boosted its position in shares of Morgan Stanley by 55.7% during the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock worth $29,000 after purchasing an additional 49 shares in the last quarter. Evolution Wealth Management Inc. boosted its position in shares of Morgan Stanley by 35.7% during the 2nd quarter. Evolution Wealth Management Inc. now owns 194 shares of the financial services provider's stock worth $41,000 after purchasing an additional 51 shares in the last quarter. Financial Management Professionals Inc. grew its stake in shares of Morgan Stanley by 0.6% during the 2nd quarter. Financial Management Professionals Inc. now owns 8,245 shares of the financial services provider's stock worth $1,724,000 after purchasing an additional 52 shares during the period. Finally, Bank OZK grew its stake in shares of Morgan Stanley by 3.0% during the 2nd quarter. Bank OZK now owns 1,815 shares of the financial services provider's stock worth $379,000 after purchasing an additional 53 shares during the period. 84.19% of the stock is owned by institutional investors.

Key Headlines Impacting Morgan Stanley

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

• Positive Sentiment: Q3 earnings exceeded expectations: Morgan Stanley reported adjusted EPS of $3.03 versus the $2.93 consensus and revenue of $20.34 billion versus estimates of $19.93 billion. Revenue increased 11.6% year over year. Morgan Stanley Beats on Earnings, But Shares Fall on Trading Mix
• Positive Sentiment: Wealth management delivered a record quarter: Net revenue reached approximately $9.1 billion, while record assets, strong net new assets and IPO-related inflows reinforced the stability of Morgan Stanley’s recurring wealth platform.
• Positive Sentiment: Equities trading was particularly strong: Equity revenue surged roughly 41% year over year, offsetting weaker fixed-income trading conditions as market volatility and higher Treasury yields reduced bond-market activity. Wall Street banks' bond trading revenue hit by market volatility, equities shine
• Positive Sentiment: Profitability remained resilient: Return on tangible common equity stayed above 20% for a fifth consecutive quarter, and Morgan Stanley declared a quarterly dividend of $1.15 per share, equivalent to a 2.5% annualized yield.
• Neutral Sentiment: Growth is concentrated in market-sensitive businesses: The earnings strength was led by equities and investment-banking activity, making results more dependent on market conditions than the headline beat alone suggests. Management is also highlighting longer-term opportunities in AI financing and advisory services.
• Negative Sentiment: Investors questioned the earnings mix and profitability: Trading-driven gains and rising costs overshadowed the strong wealth-management performance, prompting concern that some of the quarter’s outperformance may be less recurring.
• Negative Sentiment: Analysts lowered price targets: Citigroup cut its target from $210 to $190 with a neutral rating, while TD Cowen reduced its target to $205 and KBW lowered its target to $230, signaling more limited near-term upside after the results.

About Morgan Stanley

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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