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Morgan Stanley
(NYSE:MS)
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Rating:76Outperform
Price Target:
$257.00
â–²(40.18% Upside)
Action:Reiterated
Date:07/15/26
The score is driven primarily by a very strong latest earnings call (record results, high returns, capital strength and shareholder returns) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting these positives, financial performance is constrained by highly inconsistent cash flow with negative TTM OCF/FCF and a leveraged balance sheet, while valuation appears only moderate (P/E ~20.5 with a ~1.76% dividend yield).
Positive Factors
Record revenue & EPS
Sustained record revenues and strong EPS reflect broad client demand across trading, advisory and wealth channels. Durable top-line strength supports recurring fee generation, funds long-term reinvestment (tech/AI), and enables continued capital returns and strategic optionality.
Negative Factors
High financial leverage
Elevated leverage and very high absolute debt raise sensitivity to funding-market stress and higher borrowing costs. In a tightening or shocks scenario, capital and liquidity demands could constrain strategic investments, weight on NII and force more conservative capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue & EPS
Sustained record revenues and strong EPS reflect broad client demand across trading, advisory and wealth channels. Durable top-line strength supports recurring fee generation, funds long-term reinvestment (tech/AI), and enables continued capital returns and strategic optionality.
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
$344.43B
Dividend Yield2.14%
Average Volume (3M)6.00M
Price to Earnings (P/E)23.3
Beta (1Y)1.52
Revenue Growth17.82%
EPS Growth40.08%
CountryUS
Employees81,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)11.13
Shares Outstanding1,577,284,800
10 Day Avg. Volume5,481,257
30 Day Avg. Volume5,996,396
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$238.86Price Target Upside30.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)12.7
Revenue Forecast (FY)$80.57B
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 primarily through fees, commissions, net interest income, and trading-related income across its operating segments. (1) Institutional Securities: The firm earns advisory fees for mergers and acquisitions and other ...
Morgan Stanley Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 14, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive performance across revenue, profit, client assets, and capital metrics, driven by record results in Institutional Securities, Wealth Management, and Investment Management plus continued capital returns and balance sheet strength. Management emphasized disciplined reinvestment in technology and AI, a robust workplace client acquisition funnel, and a substantial capital cushion. Headwinds mentioned were limited mark-to-market losses, elevated execution and technology spending (reflected in a 65% efficiency ratio YTD), concentration of recent net new assets in IPO-driven flows, and some pockets of muted trading (FX) or sequential moderation (commodities). Overall, the positives — record revenues/profits, strong NNA and AUM growth, capital accretion, and dividend/share repurchases — significantly outweigh the manageable near-term challenges and execution costs.Positive Updates
Record Firmwide Revenues and EPS
Second-quarter record revenues of $21.3 billion and EPS ex-CVA of $3.46; first half revenue of $42 billion and H1 EPS of $6.90, demonstrating strong top-line and bottom-line performance.
Negative Updates
Mark-to-Market Losses in Other Revenues
Other revenues reflected a loss of $152 million, largely driven by mark-to-market losses on corporate loans held for sale, including hedges.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Firmwide Revenues and EPS
Second-quarter record revenues of $21.3 billion and EPS ex-CVA of $3.46; first half revenue of $42 billion and H1 EPS of $6.90, demonstrating strong top-line and bottom-line performance.
Read all positive updates
Company Guidance
Morgan Stanley said it is entering H2 2026 from a position of strength after Q2 record revenues of $21.3B and EPS ex‑CVA of $3.46 (H1 revenues $42B, H1 EPS $6.90), with ROTCE about 26.6% (Ted cited ~27% return on tangible) and a year‑to‑date efficiency ratio of 65%; segment highlights included Institutional Securities revenues $11B (equities $6.3B, investment banking $2.4B, advisory $798M, equity UW $851M, FIC UW $788M), Wealth Management revenues $8.9B with record net new assets $148B (fee‑based flows $39B, fee‑based assets $3T, total WM assets $8T; integrated TCA $10T), Investment Management AUM $2T (IM revenues $1.6B, long‑term net inflows $7.5B, Parametric ~$760B), and fixed income revenues $2.5B; the balance sheet shows spot assets $1.7T, standardized RWAs $590B, standardized CET1 14.8% with at least a ~300bp cushion after $18B CET1 accretion over 10 quarters, $1.5B of buybacks and a 15% dividend raise to $1.15/share, while near‑term guidance called for a modest sequential increase in NII (Q2 NII $2.3B), an expected annual tax rate of 22–23% (Q2 tax 23.1%), continued disciplined reinvestment and capital returns, and ongoing prioritization of organic growth supported by the corporate/IPO pipeline.Morgan Stanley Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
35
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 120.22B | 114.98B | 103.14B | 88.29B | 62.48B | 57.78B |
| Gross Profit | 69.72B | 65.62B | 57.36B | 50.13B | 49.93B | 56.41B |
| EBITDA | 27.93B | 26.61B | 22.76B | 16.07B | 18.09B | 23.88B |
| Net Income | 18.18B | 16.86B | 13.39B | 9.09B | 11.03B | 15.03B |
Balance Sheet | ||||||
| Total Assets | 1.58T | 1.42T | 1.22T | 1.19T | 1.18T | 1.19T |
| Cash, Cash Equivalents and Short-Term Investments | 659.74B | 539.97B | 401.59B | 461.89B | 467.86B | 500.35B |
| Total Debt | 394.23B | 475.56B | 360.49B | 339.04B | 308.75B | 305.36B |
| Total Liabilities | 1.47T | 1.31T | 1.11T | 1.09T | 1.08T | 1.08T |
| Stockholders Equity | 114.29B | 111.63B | 104.51B | 99.04B | 100.14B | 105.44B |
Cash Flow | ||||||
| Free Cash Flow | -1.05B | 46.10B | -2.10B | -36.95B | -9.47B | 31.66B |
| Operating Cash Flow | -1.01B | 49.00B | 1.36B | -33.54B | -6.40B | 33.97B |
| Investing Cash Flow | -48.34B | -144.22B | -29.46B | -3.08B | -11.63B | -49.90B |
| Financing Cash Flow | 91.17B | 98.31B | 46.76B | -2.73B | 22.71B | 41.55B |
Morgan Stanley Technical Analysis
Neutral
183.34
Price Trends
210.33
Positive
191.13
Positive
180.41
Positive
Market Momentum
2.96
Positive
48.35
Neutral
43.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MS, the sentiment is Neutral. The current price of 183.34 is below the 20-day moving average (MA) of 219.68, below the 50-day MA of 210.33, and above the 200-day MA of 180.41, indicating a neutral trend. The MACD of 2.96 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 43.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $919.47B | 14.66 | 16.32% | 1.79% | 8.17% | 19.76% | |
76 Outperform | $344.43B | 23.27 | 16.38% | 2.14% | 17.82% | 40.08% | |
73 Outperform | $436.37B | 13.89 | 10.50% | 1.93% | -2.06% | 27.92% | |
72 Outperform | $178.78B | 20.07 | 19.08% | 1.07% | 8.11% | 53.31% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $323.17B | 24.01 | 14.58% | 1.55% | 2.31% | 42.87% | |
63 Neutral | $225.87B | 13.72 | 7.53% | 1.94% | 3.91% | 37.25% |
* Financial Sector Average
MS
Morgan Stanley
215.50
77.99
56.72%
BAC
Bank of America
61.27
14.96
32.30%
C
Citigroup
129.36
37.98
41.57%
JPM
JPMorgan Chase
341.10
55.30
19.35%
SCHW
Charles Schwab
101.56
6.96
7.36%
GS
Goldman Sachs Group
1,065.22
370.94
53.43%
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.