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Morgan Stanley maintains Outperform rating despite institutional shareholder changes

EditorVenkatesh Jartarkar
Published 20/10/2023, 14:38
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Morgan Stanley (NYSE:MS), the global investment banking and wealth management firm operating in 41 countries, retains an 'Outperform' rating from Evercore ISI Group. The firm's one-year target is set at $98.75, suggesting a potential upside of 31.88% from its current price of $74.88, as of Friday. This positive outlook is backed by the company's projected annual revenue increase of 8.66% to $57.8 billion and a non-GAAP EPS of 7.69.

InvestingPro data shows that Morgan Stanley has a market capitalization of 119.73B USD and a P/E ratio of 13.04. The company's revenue in the last twelve months (LTM2023.Q3) was 53.38B USD, with a gross profit of 46.2B USD. This indicates a strong financial position, supporting the 'Outperform' rating.

Despite a decrease in the total shares owned by institutions by 3.42%, key stakeholders have shown their commitment. Mitsubishi Ufj Financial Group holds a significant stake of 21.59%, while Jpmorgan Chase has increased its share by 3.06%. Wellington Management Group has also raised its portfolio allocation in Morgan Stanley by a remarkable 409.65%. Additionally, VFINX - Vanguard 500 Index Fund Investor Shares has seen an ownership increase of 1.71%.

InvestingPro Tips reveal that Morgan Stanley has been aggressively buying back shares, and has maintained dividend payments for 31 consecutive years, which may further signal the confidence of the management in the company's potential.

Nevertheless, there are signs of a bearish sentiment with a put/call ratio standing at 1.13 and a drop in institutional holders to 2880. In particular, VTSMX - Vanguard Total Stock Market Index Fund has decreased its portfolio allocation in Morgan Stanley by 10.73%.

InvestingPro Tips also indicate that the stock is in oversold territory, as evidenced by the RSI, and that the company has been facing a declining trend in earnings per share. The company's stock has also fared poorly over the last month, with a 1-month price total return of -16.32% according to InvestingPro data.

Despite these challenges, the Outperform rating indicates that Morgan Stanley is expected to outperform market averages, reflecting optimism about the firm's prospects in the coming year. For more insights and tips on investing, consider checking out InvestingPro which offers additional 13 tips on Morgan Stanley and many more for other companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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