Morgan Stanley price target raised to $90 from $80 at RBC Capital

RBC Capital analyst Gerard Cassidy raised the firm’s price target on Morgan Stanley to $90 from $80 and keeps a Sector Perform rating on the shares after its Q4 earnings beat. Under John Gorman, the company has transformed itself from an institutional securities firm to a diversified investment services company with three drivers of growth – Institutional Securities, Wealth Management and Investment Management, the analyst tells investors in a research note. Cassidy adds that Morgan Stanley’s diversification of businesses has reduced the volatility that it experienced during the 2008 financial crisis, and he expects it to reward its shareholders with stock buybacks and dividend increases over the coming 12-24 months.