FY2027 EPS Estimate for Morgan Stanley Boosted by Analyst

Key Points

• Erste Group Bank raised Morgan Stanley’s FY2027 EPS estimate to $13.76 from $13.70, while maintaining a Hold rating. The estimate remains above the broader current full-year consensus of $12.66 per share.
• Morgan Stanley’s latest quarter exceeded expectations, with EPS of $3.46 versus the $2.89 consensus and revenue of $21.35 billion, up 27.1% year over year.
• The company authorized a $20 billion share buyback and increased its quarterly dividend to $1.15 from $1.00, supporting shareholder returns despite a mixed analyst outlook and a consensus Moderate Buy rating.

Morgan Stanley (NYSE:MS - Free Report) - Erste Group Bank upped their FY2027 EPS estimates for shares of Morgan Stanley in a research note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the financial services provider will post earnings per share of $13.76 for the year, up from their previous estimate of $13.70. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Morgan Stanley's current full-year earnings is $12.66 per share.

A number of other equities research analysts also recently weighed in on MS. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $243.00 target price on shares of Morgan Stanley in a report on Monday, July 20th. HSBC boosted their price target on Morgan Stanley from $215.00 to $219.00 and gave the stock a "hold" rating in a report on Monday, September 28th. Jefferies Financial Group upgraded Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Keefe, Bruyette & Woods raised their price objective on Morgan Stanley from $225.00 to $250.00 and gave the company an "outperform" rating in a research note on Thursday, July 16th. Finally, Freedom Capital raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 17th. Two equities 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 company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $219.43.

Morgan Stanley Stock Down 0.0%

NYSE MS opened at $189.96 on Monday. The business has a fifty day moving average price of $207.53 and a two-hundred day moving average price of $203.03. 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 has a fifty-two week low of $151.84 and a fifty-two week high of $232.25. The stock has a market capitalization of $299.63 billion, a PE ratio of 15.36, a PEG ratio of 1.26 and a beta of 1.22.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The business had revenue of $21.35 billion for the quarter, compared to analysts' expectations of $19.67 billion. During the same period last year, the firm posted $2.13 earnings per share. The firm's quarterly revenue was up 27.1% compared to the same quarter last year.

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

Morgan Stanley Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a $1.15 dividend. This is an increase from Morgan Stanley's previous quarterly dividend of $1.00. This represents a $4.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, July 31st. Morgan Stanley's dividend payout ratio (DPR) is 37.19%.

Institutional Trading of Morgan Stanley

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Mitsubishi UFJ Financial Group Inc. bought a new stake in Morgan Stanley during the second quarter valued at approximately $78,825,883,310. Bank of America Corp DE increased its holdings in shares of Morgan Stanley by 0.5% in the 1st quarter. Bank of America Corp DE now owns 16,326,676 shares of the financial services provider's stock worth $2,686,881,000 after buying an additional 87,533 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Morgan Stanley by 1.7% in the 2nd 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 worth $2,342,532,000 after buying an additional 188,296 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Morgan Stanley in the 2nd quarter worth $2,040,227,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Morgan Stanley by 0.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,235,756 shares of the financial services provider's stock valued at $1,190,585,000 after buying an additional 65,739 shares in the last quarter. Institutional investors own 84.19% of the company's stock.

More Morgan Stanley News

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

• Positive Sentiment: Options traders purchased approximately 26,930 MS call contracts, well above average call volume, suggesting increased short-term bullish positioning. Morgan Stanley unusual options activity
• Positive Sentiment: Jim Cramer recently backed Morgan Stanley after its pullback, highlighting the company’s buyback authorization and long-term prospects. That commentary may be supporting investor confidence, although it is not a fundamental earnings catalyst. Jim Cramer Backs Morgan Stanley After Its Pullback
• Positive Sentiment: Morgan Stanley’s proposal to convert eight Eaton Vance municipal-bond mutual funds, representing nearly $10 billion in assets, into ETFs could support its asset-management strategy and improve product efficiency if shareholders approve the transactions. Morgan Stanley Municipal Fund ETF Conversions
• Neutral Sentiment: TD Cowen initiated coverage with a Hold rating and a $210 price target, implying potential upside from the reported trading level but signaling that the firm sees balanced risk and reward. TD Cowen Initiates Morgan Stanley Coverage
• Negative Sentiment: Pre-earnings analysis points to a challenging Q3 outlook: higher costs and muted investment-banking deal activity could pressure results, even if trading revenue remains relatively strong. Morgan Stanley Stock Ahead of Q3 Earnings
• Negative Sentiment: Erste Group downgraded Morgan Stanley from Buy to Hold, adding to a more cautious analyst tone ahead of earnings. Erste Group Morgan Stanley Downgrade

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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