Morgan Stanley price target raised to $91 from $85 at RBC Capital

RBC Capital analyst Gerard Cassidy raised the firm’s price target on Morgan Stanley to $91 from $85 and keeps a Sector Perform rating on the shares. The company’s Q4 EPS of $1.15 ex-items exceeded estimates amid better-than-expected net interest income and a lower-than-expected effective tax rate, the analyst tells investors in a research note. Morgan Stanley should benefit from stronger market conditions for investment banking in the upcoming year assuming the Federal Reserve is finished with raising the Federal Funds rate, RBC adds, stating that its newly appointed CEO Ted Pick is also “well qualified”, even though the firm still remains cautious regarding the new transition.