FY2026 EPS Estimate for Morgan Stanley Lifted by Analyst

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Morgan Stanley to $12.07 from $11.97 and kept a Buy rating on the stock.
• Morgan Stanley posted strong Q2 results, with EPS of $3.46 beating estimates and revenue of $21.35 billion topping expectations, while revenue also rose 27.1% year over year.
• The company boosted its quarterly dividend to $1.15 per share and authorized a $20 billion share buyback, signaling confidence in future cash returns to shareholders.

Morgan Stanley (NYSE:MS - Free Report) - Investment analysts at Erste Group Bank upped their FY2026 earnings per share estimates for shares of Morgan Stanley in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the financial services provider will post earnings of $12.07 per share for the year, up from their prior forecast of $11.97. Erste Group Bank currently has a "Buy" rating on the stock. The consensus estimate for Morgan Stanley's current full-year earnings is $12.55 per share.

Morgan Stanley (NYSE:MS - Get Free Report) last released its earnings results 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 company had revenue of $21.35 billion during the quarter, compared to analyst estimates of $19.67 billion. Morgan Stanley had a return on equity of 19.51% and a net margin of 15.65%.Morgan Stanley's quarterly revenue was up 27.1% on a year-over-year basis. During the same period in the prior year, the company posted $2.13 earnings per share.

Several other brokerages have also issued reports on MS. Jefferies Financial Group raised Morgan Stanley from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Daiwa Securities Group boosted their price target on shares of Morgan Stanley from $175.00 to $198.00 and gave the stock a "neutral" rating in a report on Tuesday, May 5th. Royal Bank Of Canada restated a "sector perform" rating and set a $207.00 price target on shares of Morgan Stanley in a research report on Thursday, April 16th. Wolfe Research decreased their price objective on shares of Morgan Stanley from $221.00 to $197.00 and set an "outperform" rating for the company in a report on Wednesday, April 1st. Finally, Rothschild & Co Redburn lifted their price objective on shares of Morgan Stanley from $183.00 to $195.00 and gave the stock a "neutral" rating in a research report on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $220.80.

Morgan Stanley Stock Down 0.1%

MS stock opened at $215.27 on Monday. The stock's fifty day simple moving average is $211.69 and its two-hundred day simple moving average is $188.77. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 3.52. Morgan Stanley has a 1-year low of $136.17 and a 1-year high of $232.25. The stock has a market cap of $339.54 billion, a P/E ratio of 17.40, a P/E/G ratio of 1.56 and a beta of 1.23.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Purpose Unlimited Inc. purchased a new position in shares of Morgan Stanley in the fourth quarter valued at $25,000. Motiv8 Investments LLC purchased a new stake in Morgan Stanley during the 4th quarter worth about $25,000. Olistico Wealth LLC purchased a new stake in Morgan Stanley during the 4th quarter worth about $27,000. Marquette Asset Management LLC boosted its stake in Morgan Stanley by 143.4% in the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider's stock worth $27,000 after purchasing an additional 76 shares during the period. Finally, Lodestone Wealth Management LLC bought a new position in Morgan Stanley in the 4th quarter worth about $28,000. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Morgan Stanley Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be issued a $1.15 dividend. This is a boost from Morgan Stanley's previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Friday, July 31st. This represents a $4.60 annualized dividend and a yield of 2.1%. Morgan Stanley's payout ratio is 32.34%.

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

More Morgan Stanley News

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

• Positive Sentiment: Morgan Stanley reported blockbuster Q2 2026 results, with record net revenues of about $21.3 billion and earnings that beat expectations, reinforcing confidence in the company’s core businesses. Morgan Stanley (MS) Q2 2026 Earnings Call Highlights: Record Revenues and Strategic Growth ...
• Positive Sentiment: The board declared a quarterly dividend of $1.15 per share, a 15% increase from the prior quarter, which signals confidence in earnings power and capital return capacity.
• Positive Sentiment: Analysts turned more constructive after the earnings release, with Keefe, Bruyette & Woods raising its price target to $250 and Erste Group lifting FY2027 EPS estimates, suggesting more upside may remain. Morgan Stanley had its price target raised by Keefe, Bruyette & Woods from $225.00 to $250.00
• Neutral Sentiment: New reports also pointed to Morgan Stanley’s E*TRADE crypto rollout and AI-related market activity, which could help broaden its platform appeal over time but are not likely the main short-term drivers of the stock move.
• Negative Sentiment: Some articles noted a downgrade-style view from Seeking Alpha and a JPMorgan target below the current share price, which may temper enthusiasm at the margin even after the strong earnings beat. Morgan Stanley Maintains Hold on Comstock Resources, Keeps Price Target Unchanged at $16 Amid Cash Outspend and Funding Concerns

Morgan Stanley Company Profile

Morgan Stanley NYSE: MS is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company's chief executive and chairman in recent years.

The firm's primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.

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