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

With a market cap of $333.2 billion, Morgan Stanley (MS) is a leading global financial services firm headquartered in New York City. The company provides investment banking, wealth management, and investment management services to corporations, governments, financial institutions, and individual investors worldwide.

Shares of the New York-based company have outperformed the broader market over the past 52 weeks. MS stock has surged 10.4% over this time frame, while the broader S&P 500 Index ($SPX) has returned 8.2%. However, shares of the company are up 2.8% on a YTD basis, compared to SPX’s 7.4% gain. 

Focusing more closely, shares of the investment bank have outpaced the State Street Financial Select Sector SPDR ETF’s (XLF) 9.4% rise over the past 52 weeks.

Morgan Stanley released its third-quarter earnings on Oct. 14, and its shares dipped 2.8%. The company reported net revenues of $20.34 billion, up 11.6% year over year. Net income attributable to the company increased 6.5% to $4.91 billion, while EPS advanced 8.2% to $3.03. Wealth Management delivered record quarterly net revenues of $9.07 billion, increasing 10.1% year over year, thanks to higher asset management fees and net interest income. However, weaker fixed-income trading, declining Investment Management revenue, and higher operating expenses tempered overall earnings growth. 

For the fiscal year ending in December 2026, analysts expect Morgan Stanley’s EPS to grow 25.7% year over year to $12.83. The company’s earnings surprise history is impressive. It beat the consensus estimates in each of the last four quarters. 

Among the 27 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” 14 “Holds,” and one “Strong Sell.”

This configuration is slightly more bearish than a month ago, with 11 “Strong Buy” ratings on the stock.

ON Oct. 15, Goldman Sachs analyst Richard Ramsden lowered Morgan Stanley's price target to $200 from $207 while maintaining a “Neutral” rating. The analyst noted that the company continued to deliver results above its targets despite a more challenging capital markets environment. However, growing investor concerns about capital market conditions and the possibility of further interest rate increases weighed on the stock following its earnings announcement.

The mean price target of $219 represents a 20% premium to MS’ current price levels. The Street-high price target of $262 suggests a 43.6% potential upside. 

On the date of publication, Kritika Sarmah did not directly have a position 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.