Morgan Stanley (MS)
NYSE:MS
Want to see MS full AI Analyst Report?
Top Page
Morgan Stanley
(NYSE:MS)
Select Model
Select Model
Rating:71Outperform
Price Target:
$203.00
▲(10.72% Upside)
Action:UpgradedDate:04/15/26
The score is led by improving profitability and a very strong, constructive earnings-call read-through (record results and strong capital/buybacks). These positives are tempered primarily by highly volatile and mostly negative operating/free cash flow and some balance-sheet leverage sensitivity, while technicals support the uptrend but look overbought.
Positive Factors
Diversified global franchise and scale
Morgan Stanley’s integrated, multi‑product franchise—investment banking, markets, wealth and asset management—delivered record revenues and manages over $9T of client assets. That scale and client breadth provide durable fee diversification and cross‑sell advantages, reducing reliance on any single market cycle and supporting steady structural revenue generation.
Negative Factors
Volatile and often negative cash generation
Frequent negative operating and free cash flows weaken earnings quality and financial flexibility. Dependence on non‑cash accounting items or capital actions to support buybacks and growth increases vulnerability in stress periods, constraining ability to self‑fund investments or absorb shocks without raising external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified global franchise and scale
Morgan Stanley’s integrated, multi‑product franchise—investment banking, markets, wealth and asset management—delivered record revenues and manages over $9T of client assets. That scale and client breadth provide durable fee diversification and cross‑sell advantages, reducing reliance on any single market cycle and supporting steady structural revenue generation.
Read all positive factors
Morgan Stanley (MS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$304.27B
Dividend Yield2.14%
Average Volume (3M)6.70M
Price to Earnings (P/E)11.5
Beta (1Y)1.46
Revenue Growth7.22%
EPS Growth48.18%
CountryUS
Employees81,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)3.43
Shares Outstanding1,587,860,200
10 Day Avg. Volume5,422,264
30 Day Avg. Volume6,695,038
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.50
Price to Sales (P/S)2.43
P/FCF Ratio6.05
Enterprise Value/Market Cap2.17
Enterprise Value/Revenue5.75
Enterprise Value/Gross Profit10.08
Enterprise Value/Ebitda24.84
Forecast
1Y Price Target
$200.30Price Target Upside9.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)11.67
Revenue Forecast (FY)$76.36B
Morgan Stanley Business Overview & Revenue Model
Company Description
Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Ins...
How the Company Makes Money
Morgan Stanley makes money primarily by earning fees and commissions for advice and execution services, and by generating interest and trading-related revenue from its financing and markets activities. Key revenue streams include: (1) Wealth Manag...
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 Earnings Call Summary
Earnings Call Date:Apr 15, 2026
(Q1-2026)
| Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based, record-setting revenue and profitability across Institutional Securities, Wealth Management and Markets, backed by strong capital metrics (CET1 15.1%, $15B capital accreted over nine quarters) and aggressive asset-gathering (NNA $118B, fee-based flows $54B). Management also highlighted strategic investments (EquityZen, digital asset pilot), strong Asia momentum and durable markets-led financing businesses. Offsetting items included an informational "learning moment" in private credit with some fund redemptions and declines in accrued carried interest, one-time severance charges of $178 million, rising RWAs and regulatory (Basel) and macro/geopolitical uncertainties. Overall, positives around top-line records, margins, capital strength and client engagement materially outweigh the manageable and mostly non-structural challenges discussed.Positive Updates
Record Revenue and EPS
Firm reported record quarterly revenues of $20.6 billion and EPS (ex DVA) of $3.43. Return on tangible common equity (ROTCE) was very strong at ~27.1% and the efficiency ratio improved to 65%, demonstrating operating leverage and disciplined execution.
Negative Updates
Private Credit 'Adolescent' Moment and Redemptions
Management described private credit as in an "adolescent" learning moment with some redemptions in a fund during the quarter. Investment Management saw declines in accrued carried interest in private funds. Firm emphasized exposures are modest (private credit under 1% of AUM and ~1% of wealth alternatives exposure) but flagged increased scrutiny and manager selection risks.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and EPS
Firm reported record quarterly revenues of $20.6 billion and EPS (ex DVA) of $3.43. Return on tangible common equity (ROTCE) was very strong at ~27.1% and the efficiency ratio improved to 65%, demonstrating operating leverage and disciplined execution.
Read all positive updates
Company Guidance
The firm gave measured, constructive near‑term guidance anchored by several specific metrics: record Q1 revenues of $20.6B and EPS of $3.43, ROTCE 27.1%, an efficiency ratio of 65% (including $178M of severance), and a standardized CET1 ratio of 15.1% vs an 11.8% requirement (>300 bps buffer) after accreting $15B of capital over the last 9 quarters and opportunistically buying back $1.75B of common stock; Q1 tax rate was 19.6% with an expected 2026 tax rate of 22–23%; management expects net interest income to “build over the course of the year” with a modest uptick in Q2 (Q1 NII $2.2B). Business‑level guidance/benchmarks included Institutional Securities revenues $10.7B (investment banking $2.1B, advisory $978M, +74% YoY; equity revenues $5.1B; fixed income $3.4B), Wealth Management records (revenues $8.5B, PBT margin 30.4%, net new assets $118B, fee‑based flows $54B, bank lending balances $186B up $5B q/q, household lending penetration 18%, period‑end deposits $419B, adviser‑led assets ~$5.8T with >$1.2T sourced from Workplace/E*TRADE and >$400B of adviser‑led inflows since 2020), and Investment/Asset Management (Investment Management revenues $1.5B, long‑term net flows $3.3B, AUM $1.9T; asset management revenues noted at $5.1B); the firm closed the EquityZen acquisition, launched a digital‑asset pilot, and expects the proposed Basel changes to be capital‑neutral to modestly positive overall (G‑SIB bucket shown moving from ~3.5% to ~2.2% in the proposal).Morgan Stanley Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 114.98B | 103.14B | 88.29B | 62.48B | 57.78B |
| Gross Profit | 65.62B | 57.36B | 50.13B | 49.93B | 56.41B |
| EBITDA | 26.61B | 22.76B | 16.07B | 18.09B | 23.88B |
| Net Income | 16.86B | 13.39B | 9.09B | 11.03B | 15.03B |
Balance Sheet | |||||
| Total Assets | 1.42T | 1.22T | 1.19T | 1.18T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 539.97B | 401.59B | 461.89B | 467.86B | 500.35B |
| Total Debt | 475.56B | 360.49B | 339.04B | 308.75B | 305.36B |
| Total Liabilities | 1.31T | 1.11T | 1.09T | 1.08T | 1.08T |
| Stockholders Equity | 111.63B | 104.51B | 99.04B | 100.14B | 105.44B |
Cash Flow | |||||
| Free Cash Flow | 46.10B | -2.10B | -36.95B | -9.47B | 31.66B |
| Operating Cash Flow | 49.00B | 1.36B | -33.54B | -6.40B | 33.97B |
| Investing Cash Flow | -144.22B | -29.46B | -3.08B | -11.63B | -49.90B |
| Financing Cash Flow | 98.31B | 46.76B | -2.73B | 22.71B | 41.55B |
Morgan Stanley Technical Analysis
Positive
183.34
Price Trends
169.06
Positive
173.35
Positive
162.00
Positive
Market Momentum
5.45
Negative
69.75
Neutral
87.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MS, the sentiment is Positive. The current price of 183.34 is above the 20-day moving average (MA) of 170.13, above the 50-day MA of 169.06, and above the 200-day MA of 162.00, indicating a bullish trend. The MACD of 5.45 indicates Negative momentum. The RSI at 69.75 is Neutral, neither overbought nor oversold. The STOCH value of 87.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $825.10B | 12.43 | 16.32% | 1.79% | 1.89% | 12.32% | |
76 Outperform | $174.28B | 20.00 | 17.91% | 1.07% | 5.90% | 66.60% | |
72 Outperform | $389.84B | 10.30 | 10.50% | 1.93% | 0.15% | 33.84% | |
71 Outperform | $304.27B | 11.46 | 16.66% | 2.14% | 7.22% | 48.18% | |
70 Outperform | $265.34B | 11.41 | 14.57% | 1.55% | 2.31% | 44.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $230.37B | 21.83 | 6.71% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
MS
Morgan Stanley
187.32
80.99
76.18%
BAC
Bank of America
53.51
16.92
46.25%
C
Citigroup
129.34
67.69
109.81%
JPM
JPMorgan Chase
309.95
82.42
36.22%
SCHW
Charles Schwab
92.62
17.40
23.13%
GS
Goldman Sachs Group
900.00
400.85
80.31%
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.