BUZZ - Broker's Perspective: Wealth and Trading Strength Help Morgan Stanley Maintain Its Leading Position

October 15 - ** Morgan Stanley MS.N reported third-quarter profits (link) above market expectations on Wednesday, thanks to volatility sparked by interest rate decisions and the US-Iran conflict pushing up equity trading revenues, as well as consulting and M&A activity boosting investment banking income.

** The median target price from 25 brokerages covering this stock is $217, according to Reuters compilation.

Multiple growth drivers

** Barclays (“Overweight”, target price: $262) said Morgan Stanley continues to benefit from robust net new asset inflows, its integrated platform helps attract and retain clients, and consulting and financing opportunities related to artificial intelligence may support future growth.

** Citizens Bank (“In line with the market”) said Morgan Stanley delivered a strong quarter, driven by solid equity performance, record wealth inflows, and improved net interest income outlook, strengthening the bank’s confidence in its earnings prospects.

** KBW (“Outperform”, target price: $230) stated that MS remains well-positioned thanks to recurring revenue sources, strong trading performance, and multiple avenues to seize AI-related wealth creation opportunities.

** Jefferies (rated “Buy”, target price: $209) said Morgan Stanley’s strong quarterly results highlight the profitability of its integrated businesses, with results including record wealth management fund inflows, institutional securities business revenue growth, and capital flexibility supporting future growth.

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