Execution ChallengesThere is a lot going on at Morgan, with plenty to fix, and there are still plenty of questions left to answer regarding focus, execution, portfolio construction and capital allocation.
Investor SentimentThis is an unexpected downgrade given some signs of stabilisation with the 1H25 results, and despite the low valuation multiple, will likely cause another hit to the share price and investor sentiment.
Lowered ExpectationsMorgan has again lowered its FY25F expectations, with a push-out in semiconductor demand and uncertainty in European Industrial markets being the key reasons.