Financials

Morgan Stanley’s (MS) business diversification significantly reduced its revenue and earnings volatility compared with the financial crisis in 2008 to 2009, RBC Capital Markets said Tuesday in a report. RBC raised Morgan Stanley’s price target to $91 from $85 and kept its sector perform rating. The investment bank on Tuesday reported Q4 earnings of $0.85 per share, weighed down by certain charges, compared with $1.26 a year earlier. Revenue rose to $12.9 billion from $12.75 billion. Morgan Stanley’s core EPS was $1.15 based on RBC’s calculation, compared with $1.31 a year earlier. That beat RBC’s estimate of $0.97, mainly driven by better-than-expected net interest income and a lower-than-expected effective tax rate, according to the report. RBC raised its 2024 EPS estimate to $6.15 from $6.05 and maintained its 2025 EPS estimate of $7.55. Morgan Stanley is expected to implement stock buybacks and dividend increases using its excess capital, resulting in […]

Morgan Stanley (NYSE:MS) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/17/2024 2.28% JP Morgan $94 → $87 Downgrades Overweight → Neutral 01/09/2024 11.69% UBS $80 → $95 Maintains Neutral 01/09/2024 10.51% JP Morgan $92 → $94 Maintains Overweight 01/09/2024 12.86% HSBC → $96 Downgrades Buy → Hold 01/04/2024 17.56% B of A Securities $95 → $100 Maintains Buy 01/02/2024 36.37% Barclays $102 → $116 Maintains Overweight 12/21/2023 -0.07% RBC Capital → $85 Reiterates Sector Perform → Sector Perform 12/19/2023 17.56% Goldman Sachs $89 → $100 Maintains Buy 11/28/2023 -5.95% Societe Generale → $80 Downgrades Buy → Hold 11/20/2023 -0.07% Exane BNP Paribas → $85 Downgrades Outperform → Neutral 11/16/2023 21.09% Oppenheimer $98 → $103 Maintains Outperform 10/23/2023 -6.95% Odeon Capital → $79.15 Downgrades Buy → Hold 10/20/2023 — Wolfe Research Upgrades Underperform → Peer Perform 10/19/2023 14.04% Evercore ISI Group $102

Morgan Stanley (MS) on Tuesday reported weaker-than-expected fourth-quarter earnings, weighed down by certain charges, although the banking giant exceeded analysts’ expectations for revenue. Per-share earnings came in at $0.85 for the December quarter, down from $1.26 the year before and missing the Capital IQ-polled consensus of $1.03. Revenue rose to $12.9 billion from $12.75 billion, topping the Street’s view for $12.82 billion. The stock fell 3.4% in Tuesday trading. Morgan Stanley said its results were negatively impacted by a $286 million Federal Deposit Insurance Corp. special assessment to help the regulator recover losses tied to last year’s bank failures. It also recorded a $249 million legal expense that the Securities and Exchange Commission said last week would settle “fraud charges” related to certain block trades. The two charges reduced the bank’s EPS by $0.28. “In 2023, the firm reported a solid (return on tangible common equity) against a mixed market

The following is a summary of the Morgan Stanley (MS) Q4 2023 Earnings Call Transcript: Financial Performance: Morgan Stanley reported firm revenues of $54 billion with $12B of profit before tax, doubled the averages compared to ’09-’14. The client assets in their durable businesses have tripled, indicating great growth potential. A strong return on tangible common equity was recorded at 13%, even after accounting for notable items that reduced returns by over 100 points. They reported a CET1 ratio above 15%, showcasing strong capital preservation. Business Progress: Over the past 15 years, Morgan Stanley has successfully integrated with Smith Barney, acquired Solium and recent acquisitions being E*TRADE and Eaton Vance, transforming its business. Morgan Stanley is aiming for a $10 trillion asset target, indicating growth in overall wealth. The key targets include a 30% margin in wealth management and a 70% overall firm efficiency ratio, indicating focus on capital efficiency