Morgan Stanley (MS) PT Raised to $175 at Evercore ISI

Evercore ISI analyst Glenn Schorr raised the price target on Morgan Stanley (NYSE: MS) to $175.00 (from $165.00) while maintaining a Outperform rating.

The analyst comments "Despite being very well-liked into the print, there was nothing comical about MS’s results. Shares rallied ~5% as strength in IBanking/Trading and the compounding engine of GWM powered beats across all key metrics. While a capital markets-driven beat wasn’t totally out of the cards given the impressive IBD results the other big banks already reported, the real surprise was the operating leverage across ISG & GWM and the “easy” 23.5% ROTCE. After a monster quarter like this, it was natural that almost all the questions on the conference call were around the sustainability of these trends going forward. In our view, the important takeaways were: a) the 31.3% core PTM in GWM was impressive, but we shouldn’t automatically pencil in another 200-300 bps of margin expansion in the near-term given ongoing growing investments, b) green shoots are already bearing fruit as we are enter a multi-year M&A cycle where the scaled, global players will consolidate wallet share, c) with 300bps of excess capital, and another 80bps of relief on the way (thank you Fed), MS has the full menu of options at its disposal, and d) MSIM is doing some cool things under the surface and rolling-out Parametric to third-party investment managers (accounted for over half the flows last quarter) presents a compelling use case."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Freedom Broker Upgrades Serve Robotics (SERV) to Buy
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)