Morgan Stanley tops expectations on wealth management, trading and investment banking results (2024)

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Morgan Stanley tops expectations on wealth management, trading and investment banking results? ›

Morgan Stanley on Tuesday posted results that topped analysts' estimates for profit and revenue as wealth management, trading and investment banking exceeded expectations. Here's what the company reported: Earnings: $2.02 a share, vs. $1.66 expected, according to LSEG.

Morgan Stanley forecasts 6.8% growth in 2024, and 6.5% next year, and thinks inflation will stay within policymakers' comfort zone.

Morgan Stanley's investment-banking revenue rose 16% to $7 billion, boosted by a significant increase in equity underwriting from a year ago amid an uptick in initial public offerings and secondary offerings.

The average price target for Morgan Stanley is $102.40. This is based on 19 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $118.00 ,the lowest forecast is $89.00. The average price target represents 5.27% Increase from the current price of $97.27.

Ted Pick, Chief Executive Officer, said, “In the first quarter of 2024 Morgan Stanley generated net revenues of $15 billion and earnings of $2.02 per share for a 20% return on tangible equity.

On the back of expectations for a recovery in M&A and ECM activity and more DCM deals, IB firms have started responding positively and expect modest growth in 2024. We expect an increase in restructuring activity, especially in sectors such as commercial real estate, technology and consumer.

While there could be a growth slowdown in the first half of 2024, experts believe growth should resume in the second half of the year. Americans faced many financial challenges this year, from persistent inflation to increasingly expensive debt.

Morgan Stanley Private Wealth Management combines the vast resources of a trusted global financial services firm with the individualized services of an investment boutique for a hands-on tailored approach to help families, foundations and individuals manage the multiple facets —and legacy—of their wealth.

Corporations, organizations and governments around the world rely on Morgan Stanley's reputation as a global leader in investment banking.

Earnings Recession in 2023 to Transition to Strong Recovery in 2024. Morgan Stanley Research strategists think U.S. corporate earnings could decline 16% in 2023 but stage a comeback in 2024 and 2025.

Is Morgan Stanley a buy or sell? ›

Right now, Morgan Stanley possesses a Zacks Rank of #1 (Strong Buy). In the context of valuation, Morgan Stanley is at present trading with a Forward P/E ratio of 14.86.

Morgan Stanley Bank offers double the FDIC insurance amount of up to $500,000, along with free wire transfers, which makes it an attractive choice for existing Morgan Stanley investment and/or wealth management customers. However, its savings account might appeal to anyone looking for competitive rates.

The bank Morgan Stanley was reported to have lost over 80% of its market value between 2007 and 2008 during the financial crisis. On September 17, 2008, the British evening-news analysis program Newsnight reported that Morgan Stanley was facing difficulties after a 42% slide in its share price in two days. CEO John J.

Their technology team is often regarded as one of the best in the industry and they are often selected as lead bookrunner on technology IPOs.

Morgan Stanley is not responsible for any insured or uninsured portion of a Deposit Account at a Sweep Bank. In the event one of the banks fails, the deposit accounts are insured up to the FDIC limit for principal and interest accrued to the day the bank is closed. There is no insurance coverage beyond FDIC limits.

We foresee both headline and core inflation falling to around 3% year over year by the end of 2024, down from 3.4% and 3.9% on a “trimmed mean” basis, respectively, in February. We expect inflation to fall to the midpoint of the RBA's 2%–3% target range in 2025.

Our outlook for the new year is “2024”: 2% growth, 0 recessions, 2% inflation and 4% unemployment.

Real estate has re-priced meaningfully over the last two years; returns following periods of re-pricing have typically exceeded historical averages. Strength in real estate fundamentals should support rent growth for high quality assets in sectors backed by long-term demand drivers.

Technological and geopolitical trends are major drivers of stock prices in 2024. The usually sleepy utilities sector has led S&P 500 performance, fueled by optimism about revenue from AI data centers. U.S. large-cap stocks rebounded after downside trade in March and April, driven by the energy sector.