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Morgan Stanley
(NYSE:MS)
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Rating:64Neutral
Price Target:
$200.00
â–¼(-7.74% Downside)
Action:Downgraded
Date:10/14/26
The score is driven primarily by solid earnings power and upbeat earnings-call commentary (record results, strong Wealth Management and pipelines). These positives are tempered by weak technical momentum (price below key moving averages, negative MACD) and concerns in financial quality—especially volatile/negative TTM cash flow and leverage sensitivity—while a reasonable P/E and ~2.2% dividend provide valuation support.
Positive Factors
Wealth Management scale and recurring growth
Record client assets, net new assets, and fee-based flows strengthen Morgan Stanley’s recurring, asset-based revenue foundation. The combination of scale, adviser retention, and multiple client channels can support durable growth and operating leverage across varied market environments.
Negative Factors
Elevated balance-sheet leverage
Elevated debt relative to equity is inherent to Morgan Stanley’s capital-markets model but increases sensitivity to funding conditions, asset values, and market stress. Higher leverage can constrain flexibility during disruptions and raise the importance of disciplined balance-sheet and risk management.
Read all positive and negative factors
Positive Factors
Negative Factors
Wealth Management scale and recurring growth
Record client assets, net new assets, and fee-based flows strengthen Morgan Stanley’s recurring, asset-based revenue foundation. The combination of scale, adviser retention, and multiple client channels can support durable growth and operating leverage across varied market environments.
Read all positive factors
Morgan Stanley Key Performance Indicators (KPIs)
Any
Net Income Breakdown
Provides a detailed view of profit sources, illustrating how different operations contribute to the bottom line and financial health.
Provides a detailed view of profit sources, illustrating how different operations contribute to the bottom line and financial health.
Data provided by:
The Fly
The FlyMorgan Stanley (MS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$283.33B
Dividend Yield2.22%
Average Volume (3M)5.88M
Price to Earnings (P/E)14.8
Beta (1Y)1.49
Revenue Growth15.75%
EPS Growth29.33%
CountryUS
Employees83,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)12.44
Shares Outstanding1,570,566,300
10 Day Avg. Volume6,228,683
30 Day Avg. Volume5,879,559
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)2.50
Price to Sales (P/S)2.43
P/FCF Ratio6.05
Enterprise Value/Market Cap2.51
Enterprise Value/Revenue5.63
Enterprise Value/Gross Profit9.42
Enterprise Value/Ebitda23.30
Forecast
1Y Price Target
$211.07Price Target Upside-2.63% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)12.87
Revenue Forecast (FY)$82.28B
Morgan Stanley Business Overview & Revenue Model
Company Description
Morgan Stanley operates as a prominent financial holding company, delivering a comprehensive suite of financial solutions and services. Its diverse clientele spans major corporations, governmental bodies, financial institutions, and individual cli...
How the Company Makes Money
Morgan Stanley generates revenue across its three main segments through a mix of transaction-based fees, recurring asset-based fees, interest income, and trading-related income. (1) Institutional Securities: The firm earns advisory fees from merge...
Morgan Stanley Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 14, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Morgan Stanley reported record or near-record performance across firmwide results, Wealth Management, client assets, net new assets, fee-based flows, equities, and deposits, while highlighting robust pipelines, continued AI and technology investment, operating leverage, and a strong capital position. The main challenges were slower market activity later in the quarter, geopolitical and interest-rate uncertainty, lower equity underwriting and selected fixed income results, credit provisions, a modest decline in net interest income, and delays in sponsor activity. Management remained confident in the firm's long-term growth opportunities and ability to execute through different market environments.Positive Updates
Strong Firmwide Third-Quarter Results
Morgan Stanley reported third-quarter firmwide revenue of $20.3 billion, EPS of $30.03 as cited by Ted Pick and $3.03 as cited by Sharon Yeshaya in the transcript, and a return on tangible equity of 22.6%. The quarter marked the fifth consecutive quarter with ROTCE above 20%.
Negative Updates
Market Activity Moderated Later in the Quarter
July and August were unusually brisk, but market volumes slowed as Labor Day approached and investors assessed renewed Middle East tensions, higher global interest rates, and fourth-quarter and year-end risks.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Firmwide Third-Quarter Results
Morgan Stanley reported third-quarter firmwide revenue of $20.3 billion, EPS of $30.03 as cited by Ted Pick and $3.03 as cited by Sharon Yeshaya in the transcript, and a return on tangible equity of 22.6%. The quarter marked the fifth consecutive quarter with ROTCE above 20%.
Read all positive updates
Company Guidance
For the fourth quarter, Morgan Stanley expects a tax rate to be slightly above the third quarter's tax rate, a modest increase in net interest income, subject to rates and client behavior, and full year guidance remains unchanged; net interest income is expected to expand over next year, largely on the back of loan growth, while the pretax margin will expand over time with scale. Management said AI hyperscaler CapEx is running at around $1 trillion a year, could be 1 trillion 2 or a trillion 4 or trillion, and could remain at a run rate that is plus or minus $1 trillion over the course of 5, 10 years; US nominal GDP growth is 5% to 6%, and AI contributes 50, 70 basis points of real GDP in The US.Morgan Stanley Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 126.53B | 114.98B | 103.14B | 88.29B | 62.48B | 57.78B |
| Gross Profit | 75.56B | 65.62B | 57.36B | 50.13B | 49.93B | 56.41B |
| EBITDA | 30.55B | 26.61B | 22.76B | 16.07B | 18.09B | 23.88B |
| Net Income | 20.23B | 16.86B | 13.39B | 9.09B | 11.03B | 15.03B |
Balance Sheet | ||||||
| Total Assets | 1.68T | 1.42T | 1.22T | 1.19T | 1.18T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 866.07B | 539.97B | 401.59B | 461.89B | 467.86B | 500.35B |
| Total Debt | 524.58B | 475.56B | 360.49B | 339.04B | 308.75B | 305.36B |
| Total Liabilities | 1.56T | 1.31T | 1.11T | 1.09T | 1.08T | 1.08T |
| Stockholders Equity | 110.42B | 111.63B | 104.51B | 99.04B | 100.14B | 105.44B |
Cash Flow | ||||||
| Free Cash Flow | -15.68B | 46.10B | -2.10B | -36.95B | -9.47B | 31.66B |
| Operating Cash Flow | -15.59B | 49.00B | 1.36B | -33.54B | -6.40B | 33.97B |
| Investing Cash Flow | -37.88B | -144.22B | -29.46B | -3.08B | -11.63B | -49.90B |
| Financing Cash Flow | 106.57B | 98.31B | 46.76B | -2.73B | 22.71B | 41.55B |
Morgan Stanley Technical Analysis
Negative
216.77
Price Trends
201.64
Negative
208.52
Negative
193.11
Negative
Market Momentum
-5.48
Negative
38.94
Neutral
43.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MS, the sentiment is Negative. The current price of 216.77 is above the 20-day moving average (MA) of 187.41, above the 50-day MA of 201.64, and above the 200-day MA of 193.11, indicating a bearish trend. The MACD of -5.48 indicates Negative momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 43.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MS.
Morgan Stanley Risk Analysis
Morgan Stanley disclosed 75 risk factors in its most recent earnings report. Morgan Stanley reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Morgan Stanley Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $157.18B | 15.56 | 21.29% | 1.34% | 12.30% | 37.56% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $9.70B | 13.13 | 39.83% | 1.37% | 45.68% | 59.92% | |
64 Neutral | $283.33B | 14.76 | 18.09% | 2.22% | 15.75% | 29.33% | |
63 Neutral | $263.43B | 12.84 | 17.90% | 1.99% | 7.50% | 41.36% | |
59 Neutral | $10.34B | 11.58 | 8.81% | 3.55% | 26.48% | 29.87% | |
56 Neutral | $25.35B | 25.50 | 18.45% | 0.37% | 38.82% | -14.48% |
* Financial Sector Average
MS
Morgan Stanley
183.97
28.19
18.10%
EVR
Evercore Partners
255.39
-58.90
-18.74%
JEF
Jefferies
45.64
-7.65
-14.36%
LPLA
LPL Financial
318.85
-18.22
-5.41%
SCHW
Charles Schwab
91.44
-1.97
-2.10%
GS
Goldman Sachs Group
891.30
155.00
21.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.