Vining Sparks Maintains a Buy Rating on Morgan Stanley (MS)

By Carrie Williams

In a report released today, Marty Mosby from Vining Sparks maintained a Buy rating on Morgan Stanley (NYSE: MS), with a price target of $60. The company’s shares opened today at $45.94.

Mosby wrote:

“MS’ ROTCE should improve by 3 percentage points in 2018E and by another percentage point in 2019E, which should push its excess return-on-equity to 5 to 6 percentage points and its expected price-to-tangible book value toward 165% eventually. Moreover, MS’ 3Q’18 operating earnings per share has grown by 31% over 3Q’17; however, its stock price is down 6% since October of last year. Thus, we believe MS should be able to generate a significant outperformance once investors stop minimizing recent improvement in returns due to recession worries.”

According to TipRanks.com, Mosby is a 5-star analyst with an average return of 12.9% and a 61.8% success rate. Mosby covers the Financial sector, focusing on stocks such as Huntington Bancshares Inc, Goldman Sachs Group Inc, and Fifth Third Bancorp.

Currently, the analyst consensus on Morgan Stanley is a Moderate Buy with an average price target of $59.44, a 29.4% upside from current levels. In a report released today, Oppenheimer also upgraded the stock to Buy with a $62 price target.

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Based on Morgan Stanley’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $13 billion and net profit of $2.44 billion. In comparison, last year the company earned revenue of $10.76 billion and had a net profit of $1.78 billion.

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Morgan Stanley provides investment banking products and services to its clients and customers including corporations, governments, financial institutions, and individuals. It operates through the following business segments: Institutional Securities, Wealth Management, and Investment Management.