Key Stats for Morgan Stanley Stock
- Price change for Morgan Stanley stock in last 6 months: -5%
- $MS Stock Price as of Oct. 14: $182
- 52-Week High: $232
- $MS Stock Price Target: $222
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What Happened?
Morgan Stanley (MS) reported Q3 results that beat Wall Street estimates.
- Earnings per share were $3.03, compared with the $2.91 analysts expected.
- Revenue was $20.34 billion, above the $20.11 billion estimate.
- Profit rose 6.5% to $4.91 billion, and revenue grew 12%.
Stock trading drove the growth. Equities revenue jumped 41% to $5.8 billion, about $909 million above estimates.
Other areas were weaker:
- Investment banking: Revenue rose 2% to $2.16 billion, about $110 million short of estimates.
- Advisory revenue grew, but equity underwriting fell because of fewer IPOs.
- Fixed income: Revenue fell 7% to $2.01 billion, about $260 million below expectations.
Wealth management had a record quarter with $9.1 billion in revenue as clients added $232 billion in new assets. Total client assets reached a record $10.5 trillion.
The bank also posted a 22.6% return on tangible equity, the fifth straight quarter above 20%.
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What the Market Is Telling Us About Morgan Stanley Stock
The results were strong, but the market wasn’t thrilled. Morgan Stanley stock slid about 3% on Wednesday.
Wells Fargo analyst Mike Mayo called the quarter “good, but not great.” Some business metrics improved more slowly than before. Misses in bonds and deal-making likely weighed on shares.
CEO Ted Pick says two forces are shaping the economy. One is the AI build-out and the other is geopolitical conflict.
He said activity slowed starting in early September. Worries about overseas conflict, inflation, and rising yields were the reasons.
Pick told CNBC he hopes the positive story wins out. That depends on getting “some control over the geopolitics.” He is “cautiously optimistic” about Q4.
The balance sheet gives Morgan Stanley stock some cushion. The bank has about 300 basis points of excess capital. Its CET1 ratio was 14.9%. It also bought back $1.5 billion of its own shares in the quarter.
On the call, Pick said investment banking pipelines remain high.
For now, Morgan Stanley stock is caught between a strong quarter and a shaky backdrop. Investors will watch whether trading stays hot and whether deal activity picks up.
Those two things will likely drive Morgan Stanley stock from here.
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So what is Morgan Stanley stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
