Morgan Stanley (NYSE:MS) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-six analysts give Morgan Stanley an average “Moderate Buy” rating, with an average 12-month price target of $219.90.
• Morgan Stanley posted quarterly EPS of $3.46 and revenue of $21.35 billion, exceeding expectations, while revenue rose 27.1% year over year.
• The company authorized a $20 billion share buyback and increased its quarterly dividend to $1.15 per share, equivalent to a 2.4% annual yield.

Shares of Morgan Stanley (NYSE:MS - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-six analysts that are presently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $219.90.

MS has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods upped their price target on Morgan Stanley from $225.00 to $250.00 and gave the company an "outperform" rating in a report on Thursday, July 16th. Citigroup reduced their price objective on Morgan Stanley from $235.00 to $210.00 and set a "neutral" rating for the company in a report on Wednesday, September 30th. Freedom Capital raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Oppenheimer cut shares of Morgan Stanley from a "market perform" rating to an "underperform" rating in a research note on Tuesday, June 30th. Finally, Zacks Research downgraded shares of Morgan Stanley from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 30th.

Morgan Stanley News Roundup

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

• Positive Sentiment: Morgan Stanley was selected as one of six joint lead managers for the U.K.’s first digitally native government bond. The planned Digital Gilt Instrument, expected in the first quarter of 2027, could generate underwriting, distribution and advisory revenue while strengthening the firm’s position in digital-asset and blockchain-related capital markets. UK names 6 banks to lead first digitally native government bond
• Positive Sentiment: An investment research article highlighted Morgan Stanley’s integrated banking, wealth-management and asset-management model as a potential long-term earnings driver. The thesis is supported by recovering deal activity and expanding client assets, although it is not a new company forecast or earnings announcement. Can Morgan Stanley's Integrated Model Drive Long-Term Earnings Growth?
• Neutral Sentiment: Morgan Stanley’s broader market calls included a lower 2026 Saudi Arabia GDP forecast because of prolonged oil-supply disruption and a recommendation to short the British pound ahead of the U.K. budget. These developments may affect client trading and advisory conditions, but they do not directly change Morgan Stanley’s earnings outlook. Morgan Stanley lowers Saudi Arabia 2026 GDP forecast
• Negative Sentiment: BMO Capital Markets lowered its Morgan Stanley price target from $250 to $215 while maintaining an “Outperform” rating. The revised target still implies meaningful upside from the current trading level, but the cut may weigh on sentiment by signaling more limited near-term upside than previously expected. BMO Capital Markets Cuts Morgan Stanley Price Target to $215

Morgan Stanley Price Performance

Shares of MS opened at $190.87 on Wednesday. Morgan Stanley has a twelve month low of $151.84 and a twelve month high of $232.25. The company has a market capitalization of $301.05 billion, a P/E ratio of 15.43, a price-to-earnings-growth ratio of 1.36 and a beta of 1.22. The firm has a 50 day moving average of $208.67 and a 200 day moving average of $202.44. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.65.

Morgan Stanley (NYSE:MS - Get Free Report) last released its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.57. The business had revenue of $21.35 billion for the quarter, compared to analysts' expectations of $19.67 billion. Morgan Stanley had a return on equity of 19.31% and a net margin of 15.65%.The firm's quarterly revenue was up 27.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.13 EPS. As a group, equities research analysts anticipate that Morgan Stanley will post 12.71 earnings per share for the current fiscal year.

Morgan Stanley declared that its Board of Directors has authorized a share buyback plan on Wednesday, June 24th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 5.6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

Morgan Stanley Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were given a dividend of $1.15 per share. This represents a $4.60 dividend on an annualized basis and a yield of 2.4%. This is a positive change from Morgan Stanley's previous quarterly dividend of $1.00. The ex-dividend date was Friday, July 31st. Morgan Stanley's payout ratio is currently 37.19%.

Institutional Investors Weigh In On Morgan Stanley

A number of large investors have recently added to or reduced their stakes in MS. Mitsubishi UFJ Financial Group Inc. purchased a new position in shares of Morgan Stanley in the 2nd quarter worth $78,825,883,310. State Street Corp increased its position in Morgan Stanley by 0.5% during the fourth quarter. State Street Corp now owns 103,854,751 shares of the financial services provider's stock valued at $18,437,334,000 after acquiring an additional 539,544 shares during the last quarter. Bank of America Corp DE increased its position in Morgan Stanley by 0.5% during the first quarter. Bank of America Corp DE now owns 16,326,676 shares of the financial services provider's stock valued at $2,686,881,000 after acquiring an additional 87,533 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Morgan Stanley by 1.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,206,144 shares of the financial services provider's stock valued at $2,342,532,000 after acquiring an additional 188,296 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Morgan Stanley in the second quarter valued at about $2,040,227,000. Institutional investors own 84.19% of the company's stock.

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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