Royal Bank Of Canada Forecasts Strong Price Appreciation for Morgan Stanley (NYSE:MS) Stock

Key Points

• Royal Bank of Canada has raised its price target for Morgan Stanley's stock from $145.00 to $171.00, suggesting a potential upside of 8.64%.
• Several research firms have also increased their price targets for Morgan Stanley, with the highest target set at $180.00 by BMO Capital Markets.
• Morgan Stanley reported an earnings per share of $2.13 for the last quarter, surpassing analysts' expectations, and its revenue increased by 11.8% compared to the previous year.

Morgan Stanley (NYSE:MS - Get Free Report) had its price target increased by Royal Bank Of Canada from $145.00 to $171.00 in a note issued to investors on Wednesday,MarketScreener reports. The firm presently has a "sector perform" rating on the financial services provider's stock. Royal Bank Of Canada's target price indicates a potential upside of 8.64% from the company's previous close.

Several other research firms also recently weighed in on MS. Keefe, Bruyette & Woods raised shares of Morgan Stanley from a "market perform" rating to an "outperform" rating and raised their price target for the stock from $127.00 to $160.00 in a research note on Wednesday, July 9th. Evercore ISI raised their price target on shares of Morgan Stanley from $150.00 to $165.00 and gave the stock an "outperform" rating in a research note on Tuesday. Citigroup raised their price target on shares of Morgan Stanley from $130.00 to $155.00 and gave the stock a "neutral" rating in a research note on Friday, September 26th. The Goldman Sachs Group raised their price target on shares of Morgan Stanley from $145.00 to $164.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, BMO Capital Markets started coverage on shares of Morgan Stanley in a research note on Friday. They set an "outperform" rating and a $180.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Morgan Stanley presently has an average rating of "Moderate Buy" and an average target price of $152.92.

Morgan Stanley Stock Up 1.4%

MS stock opened at $157.40 on Wednesday. The firm has a market cap of $251.27 billion, a PE ratio of 17.83, a P/E/G ratio of 1.93 and a beta of 1.32. The company has a debt-to-equity ratio of 3.30, a quick ratio of 0.78 and a current ratio of 0.78. The firm's fifty day moving average is $150.30 and its 200 day moving average is $134.43. Morgan Stanley has a one year low of $94.33 and a one year high of $163.98.

Morgan Stanley (NYSE:MS - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $2.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.98 by $0.15. Morgan Stanley had a net margin of 13.06% and a return on equity of 15.20%. The business had revenue of $16.79 billion for the quarter, compared to analyst estimates of $16.15 billion. During the same quarter last year, the business earned $1.82 earnings per share. The company's revenue for the quarter was up 11.8% compared to the same quarter last year. On average, research analysts forecast that Morgan Stanley will post 8.56 EPS for the current year.

Morgan Stanley declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, July 1st that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 8.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Sharon Yeshaya sold 25,583 shares of the company's stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $139.81, for a total value of $3,576,759.23. Following the completion of the transaction, the chief financial officer owned 128,662 shares in the company, valued at approximately $17,988,234.22. This represents a 16.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Andrew M. Saperstein sold 43,566 shares of the stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $140.97, for a total transaction of $6,141,499.02. Following the sale, the insider owned 294,250 shares of the company's stock, valued at approximately $41,480,422.50. This represents a 12.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 148,149 shares of company stock worth $20,841,628. 0.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Morgan Stanley

Hedge funds have recently added to or reduced their stakes in the business. CBIZ Investment Advisory Services LLC boosted its position in shares of Morgan Stanley by 111.0% in the first quarter. CBIZ Investment Advisory Services LLC now owns 211 shares of the financial services provider's stock worth $25,000 after acquiring an additional 111 shares during the last quarter. Princeton Global Asset Management LLC boosted its position in shares of Morgan Stanley by 645.8% in the second quarter. Princeton Global Asset Management LLC now owns 179 shares of the financial services provider's stock worth $25,000 after acquiring an additional 155 shares during the last quarter. MorganRosel Wealth Management LLC acquired a new stake in shares of Morgan Stanley in the first quarter worth approximately $27,000. WFA of San Diego LLC acquired a new stake in shares of Morgan Stanley in the second quarter worth approximately $28,000. Finally, Garde Capital Inc. acquired a new stake in shares of Morgan Stanley in the first quarter worth approximately $30,000. 84.19% of the stock is currently owned by hedge funds and other institutional investors.

Morgan Stanley Company Profile

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments.

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