Morgan Stanley (NYSE: MS) has delivered a strong rebound, climbing about 34% over the past year as markets stabilized and deal activity improved. The stock now trades near $159/share, supported by steady earnings growth and strong capital returns. Analysts see modest upside from here.
Recently, Morgan Stanley reported stronger results across investment banking and trading as deal activity picked up and market conditions improved. The firm also announced plans to introduce cryptocurrency trading through its E*Trade platform, highlighting its continued push into new asset classes and digital innovation.
This article explores where Wall Street analysts believe Morgan Stanley could trade by 2027. We have compiled consensus forecasts and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
Unlock our Free Report: 5 AI compounders that analysts believe are undervalued and could deliver years of outperformance with accelerating AI adoption (Sign up for TIKR, it’s free) >>>
Analyst Price Targets Suggest Limited Upside
Morgan Stanley trades near $159/share today. The average analyst price target is around $164/share, pointing to about 3% upside from current levels. Forecasts remain relatively tight, suggesting analysts see the stock as largely priced in after its strong rebound.
- High estimate: ~$186/share
- Low estimate: ~$122/share
- Median target: ~$170/share
- Ratings: 6 Buys, 2 Outperforms, 16 Holds, 1 Underperform
With limited upside, most analysts believe the recent strength already reflects improving deal activity and steady wealth management growth. For investors, that means Morgan Stanley looks fairly valued, though it could still outperform slightly if markets stay stable and fee-based income continues to grow.
See analysts’ growth forecasts and price targets for Morgan Stanley (It’s free!) >>>
Morgan Stanley: Growth Outlook and Valuation
The company’s fundamentals look healthy and well-balanced.
- Revenue is projected to grow about 7.5% annually through 2027
- Operating margins are expected to hold near 30%
- Shares trade around 14x forward earnings, close to historical averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 14x forward P/E suggests the stock could reach roughly $181/share by 2027.
- That implies about 14% total upside, or around 6% annualized returns.
For investors, Morgan Stanley appears positioned for steady compounding rather than explosive growth. Its mix of wealth management, trading, and capital markets provides stability across cycles, while efficient capital returns support consistent shareholder value creation.
Value stocks like Morgan Stanley in as little as 60 seconds with TIKR (It’s free) >>>
What’s Driving the Optimism?
Morgan Stanley continues to benefit from a strong wealth management franchise and a growing base of recurring fee income. These steady cash flows help offset volatility in investment banking and trading.
The firm is also seeing improving momentum in dealmaking as capital markets activity rebounds. Strong cost discipline and a healthy balance sheet support ongoing buybacks and dividends, reinforcing investor confidence in its ability to deliver consistent returns.
For investors, these strengths highlight a dependable earnings engine that can compound steadily through market cycles, even without aggressive growth.
Bear Case: Slower Growth and Competition
Despite its solid fundamentals, Morgan Stanley’s upside may be limited if global markets cool or trading volumes decline. Investment banking remains cyclical, and renewed market volatility could weigh on deal activity.
Competition in wealth management is also intensifying, with rivals pushing harder into advisory and digital platforms. If client inflows slow, earnings growth could flatten faster than expected.
For investors, the risk is that current valuations already reflect much of the good news. Without stronger-than-expected growth, returns may stay moderate.
Outlook for 2027: What Could Morgan Stanley Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests Morgan Stanley could trade near $181/share by 2027. That represents about 14% total upside, or roughly 6% annualized returns from current levels.
While that’s a respectable outcome, it already assumes continued strength in wealth management and steady recovery in investment banking. To see more meaningful upside, the company would likely need faster asset growth, sustained cost efficiency, and stronger capital markets activity.
For investors, Morgan Stanley looks like a stable long-term compounder offering modest but dependable returns through dividends, buybacks, and disciplined execution.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.
