New York-based Morgan Stanley (MS) is a financial services holding company that serves corporations, governments, financial institutions, and individuals worldwide. Valued at $160.76 billion by market cap, the company provides a wide range of investment banking, securities, wealth management, and investment management services.
Morgan Stanley shares underperformed the broader market over the past year. MS has gained 19.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.1%. But in 2024, the gap narrowed, with MS stock rising 6.1%, while the SPX is up 10.4% on a YTD basis.
Narrowing the focus, MS’ underperformance looks more pronounced when compared to the KBW Bank Invesco ETF (KBWB). The exchange-traded fund has gained about 32% over the past year. Also, the ETF’s 8.6% returns on a YTD basis outshine the stock’s gains over the same time frame.
MS shares surged more than 3% after reporting Q1 results. The company’s wealth management net revenue came in at $6.88 billion, beating the consensus estimate of $6.69 billion.
For the current fiscal year, ending in December, analysts expect MS’ EPS to grow 25.1% to $6.83 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering MS stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 14 “Holds.”
This configuration has been consistent over the past three months.
Recently, Oppenheimer retained an “Outperform” rating on MS stock, increasing the price target from $101 to $105, implying a potential upside of 6.1% from current levels.
The mean price target of $98.20 represents a marginal downside from MS’ current price levels. The Street-high price target of $118 suggests an upside potential of 19.3%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions 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.
