Morgan Stanley (NYSE:MS) Stock Gets Price Target Boost from UBS Group

Key Points

• UBS Group raised Morgan Stanley’s price target to $240 from $236 and maintained a “buy” rating, implying 29.33% upside from the prior close.
• Analyst sentiment remains broadly positive but mixed: MarketBeat’s consensus rating is “Moderate Buy,” with a consensus price target of $214.81.
• Morgan Stanley exceeded quarterly expectations, reporting $3.03 in EPS and $20.34 billion in revenue, while shares recently traded at $185.57.

Morgan Stanley (NYSE:MS - Get Free Report) had its target price lifted by equities research analysts at UBS Group from $236.00 to $240.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. UBS Group's target price suggests a potential upside of 29.33% from the company's previous close.

A number of other equities research analysts have also weighed in on the stock. Keefe, Bruyette & Woods reissued an "outperform" rating and set a $230.00 target price (down from $250.00) on shares of Morgan Stanley in a report on Thursday, October 15th. Erste Group Bank cut shares of Morgan Stanley from a "buy" rating to a "hold" rating in a research report on Thursday, October 8th. Zacks Research downgraded shares of Morgan Stanley from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 30th. Wells Fargo & Company cut their price target on shares of Morgan Stanley from $223.00 to $217.00 and set an "equal weight" rating on the stock in a report on Thursday, October 15th. Finally, Bank of America boosted their price objective on shares of Morgan Stanley from $225.00 to $250.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $214.81.

Morgan Stanley Price Performance

Shares of Morgan Stanley stock traded up $1.27 during trading on Monday, reaching $185.57. 4,987,895 shares of the company's stock were exchanged, compared to its average volume of 6,199,412. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.79 and a current ratio of 0.79. Morgan Stanley has a 1-year low of $152.80 and a 1-year high of $232.25. The company has a market cap of $292.69 billion, a P/E ratio of 14.73, a PEG ratio of 1.23 and a beta of 1.23. The firm's 50-day moving average price is $198.11 and its 200 day moving average price is $194.29.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data on Wednesday, October 14th. The financial services provider reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.93 by $0.10. The company had revenue of $20.34 billion for the quarter, compared to the consensus estimate of $19.93 billion. Morgan Stanley had a return on equity of 19.40% and a net margin of 15.63%. Morgan Stanley's revenue for the quarter was up 11.6% on a year-over-year basis. During the same quarter last year, the business posted $2.80 EPS. As a group, research analysts anticipate that Morgan Stanley will post 12.83 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Marquette Asset Management LLC increased its position in shares of Morgan Stanley by 143.4% during the second quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock worth $27,000 after buying an additional 76 shares during the period. Atlatl Advisers LLC bought a new position in Morgan Stanley during the second quarter worth $28,000. Hughes Financial Services LLC lifted its holdings in Morgan Stanley by 55.7% in the second quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider's stock valued at $29,000 after buying an additional 49 shares during the period. Security National Bank of SO Dak acquired a new position in Morgan Stanley in the second quarter valued at $31,000. Finally, Community Financial Services Group LLC lifted its holdings in Morgan Stanley by 297.4% in the second quarter. Community Financial Services Group LLC now owns 151 shares of the financial services provider's stock valued at $32,000 after buying an additional 113 shares during the period. Institutional investors own 84.19% of the company's stock.

Key Stories Impacting Morgan Stanley

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

• Positive Sentiment: Chief U.S. strategist Mike Wilson said the midterm elections could serve as a “clearing event” for markets, potentially ending the correction that began in June. A recovery in equity prices would support Morgan Stanley’s fee-based wealth-management revenue and capital-markets activity. The election will be good news, regardless of outcome, says Morgan Stanley’s chief stock-market strategist
• Positive Sentiment: Wilson also sees the S&P 500 potentially reaching 8,500, which would be favorable for Morgan Stanley’s record client-asset base and wealth-management fees if the forecast materializes. Morgan Stanley’s Wilson Sees S&P 500 at 8,500
• Positive Sentiment: Exchange-traded funds recorded approximately $20.8 million in net buying of MS shares on October 29, with substantially more ETFs buying than selling. The flow provides a modest technical tailwind, although it is not a fundamental earnings catalyst. Morgan Stanley sees $20.8 million in net ETF buying
• Neutral Sentiment: Morgan Stanley reported that hedge funds are underweight AI stocks for the first time since 2023. This may reduce some market exuberance, but it also signals continued uncertainty around a major source of equity-market gains and trading activity. Morgan Stanley says hedge funds are underweight AI stocks
• Negative Sentiment: The firm warned that the S&P 500 could still fall about 9% during an AI-led correction. A renewed market decline would weigh on asset-based fees, client sentiment and investment-banking activity. Morgan Stanley warns the S&P 500 could drop 9%
• Neutral Sentiment: Cousins Properties and Trammell Crow formed a venture to acquire the Dallas site for Morgan Stanley’s planned $1.2 billion high-rise. The project reinforces Morgan Stanley’s long-term Dallas presence but is unlikely to materially affect near-term earnings. Cousins Properties buys into Morgan Stanley’s planned $1.2 billion Dallas high-rise

About Morgan Stanley

Morgan Stanley NYSE: MS is a global financial services company that provides investment banking, securities, wealth management and investment management services to corporations, institutions, governments and individual investors. Founded in 1935, the company is headquartered in New York City and serves clients through operations across North America, Europe, Asia-Pacific and other international markets.

Through its Institutional Securities segment, Morgan Stanley offers investment banking, equity and fixed-income sales and trading, research, lending and related capital-markets services.

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