Morgan Stanley Delivers Strong Q3 With Robust Equities Revenue, Record Wealth Flows

Morgan Stanley (NYSE:MS) shares fell in early trading on Wednesday, despite the company reporting upbeat third-quarter results.

Here are some key analyst takeaways:

• Piper Sandler analyst Scott Siefers reiterated a Hold rating, while cutting the price target from $210 to $205.
• Citizens JMP Securities analyst Devin Ryan reiterated a Market Perform rating on the stock.

Check out other analyst stock ratings.

Piper Sandler: Morgan Stanley reported earnings of $3.03 per share, surpassing consensus of $2.93 per share, Siefers said in a note. While the outperformance was lower than Goldman Sachs‘s (NYSE:GS), investors typically do not expect "that type of outsized performance from this company," he added.

Instead, the focus is on the durability of Morgan Stanley’s earnings, which it has created through its balanced Investment Banking (IB) and Asset and Wealth Management business model, the analyst stated.

He highlighted that:

• Within Institutional Securities, the company’s revenues grew 17.7% year-on-year, driven by a robust 40.9% growth in Equities and a 29.7% jump in advisory revenues.
• Even in Wealth Management, Morgan Stanley generated double-digit year-on-year growth, driven by a 15.8% jump in asset management revenues.

Citizens JMP Securities: Morgan Stanley’s earnings rose 8% year-on-year to $3.03 per share, while net revenue grew 12% to $20.3 billion, despite a 5% sequential decline from "an exceptional" second-quarter performance, Ryan said.

The company "delivered another strong quarter," he added, driven by robust performance in Equities and record Wealth flows.

The Equities business generated $17.3 billion in revenue through nine months, up 44% year-on-year, the analyst noted.

The third-quarter performance and management’s more constructive 2027 NII outlook "leave us with a higher view of the earnings base," he further wrote.

MS Price Action: Morgan Stanley shares rose 1.12% to $179.47 at the time of publication on Thursday.

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