Morgan Stanley Stock Outlook: Is Wall Street Bullish or Bearish?

New York-based Morgan Stanley (MS) provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. With a market cap of $191.5 billion, Morgan Stanley operates through Institutional Securities, Wealth Management, and Investment Management segments.

The financial sector giant has outpaced the broader market over the past year. MS stock prices are up 26.3% on the year and 54.5% over the past 52-week period, compared to the S&P 500 Index’s ($SPX) 21.2% gains in 2024 and 32.7% returns over the past year.

Narrowing the focus, Morgan Stanley has also outpaced the SPDR S&P Capital Markets ETF’s (KCE) 53.2% gains over the past year but lagged behind KCE’s 30.3% returns on a YTD basis. 

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Morgan Stanley’s stock soared 6.5% after the release of its Q3 earnings on Oct. 16. The company reported better-than-expected net revenues of $15.4 billion and earnings of $1.88 per share due to strong investment banking performance, particularly in advisory and underwriting fees, which drove a 56% increase in total IB fees. Additionally, robust trading revenues, especially a 21% jump in equity trading, and solid growth in wealth management revenues exceeded analyst expectations. The market reacted positively to the company’s solid earnings beat, boosted by cost controls and strategic share repurchases.

For the current fiscal year, ending in December, analysts expect Morgan Stanley to report a 33.5% year-over-year growth in adjusted EPS to $7.29. Moreover, the company has a robust earnings surprise history. It has surpassed Wall Street’s earnings estimates in the past four quarters. 

MS stock has a consensus “Moderate Buy” rating overall. Out of the 22 analysts covering the stock, six recommend “Strong Buy,” 15 advise “Hold,” and one advocates a “Strong Sell” rating. 

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This configuration is less bullish than three months ago, with eight “Strong Buy” ratings on the stock.

On Oct. 17, The Goldman Sachs Group, Inc. (GS) analyst Richard Ramsden maintained a “Hold” rating on MS while raising the price target to $121.

The mean price target of $118.44 suggests a marginal upside from current price levels. The Street-high target of $135 represents a premium of 14.6%. 

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.