Ticonderoga Reiterates a 'Buy' on Morgan Stanley (MS); Capital Clean-Up Is Worth the Price; Lowering Estimates Marginally
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Price: $217.36 -0.47%
Rating Summary:
22 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga reiterates a 'Buy' on Morgan Stanley (NYSE: MS), PT $31.
Ticonderoga analyst says, "EPS of $0.50 was roughly in line with our estimate. A tax benefit of $0.30 helped to offset JV losses of $0.26 per share. Net revenues were $7.6bn, or close to $8.3bn when adding back the impact from MUFG. Adjusted for the loss, net revenues were about 10% better than our estimate, driven by stronger institutional and retail revenues. MS delivered its best equity trading revenues since the financial crisis and participated in seasonal fixed income trading strength. Overall, excluding items, revenue trends continue to track reasonably well. The challenge remains inefficient capital."
"We are now modeling a Q2 loss of $0.58 incorporating the $2bn hit to earnings from the conversion. Excluding the charge, we estimate Q2 earnings at $0.50 and full-year 2011 and 2012 EPS at $1.97 and $2.61, respectively, compared with $2.18 and $2.69 previously. While the dilution near-term can’t be ignored, the outlook for the company continues to improve with a more secure common capital base and steady improvements throughout the three segments."
For more ratings news on Morgan Stanley click here and for the rating history of Morgan Stanley click here.
Shares of Morgan Stanley closed at $26.48 yesterday.
Ticonderoga analyst says, "EPS of $0.50 was roughly in line with our estimate. A tax benefit of $0.30 helped to offset JV losses of $0.26 per share. Net revenues were $7.6bn, or close to $8.3bn when adding back the impact from MUFG. Adjusted for the loss, net revenues were about 10% better than our estimate, driven by stronger institutional and retail revenues. MS delivered its best equity trading revenues since the financial crisis and participated in seasonal fixed income trading strength. Overall, excluding items, revenue trends continue to track reasonably well. The challenge remains inefficient capital."
"We are now modeling a Q2 loss of $0.58 incorporating the $2bn hit to earnings from the conversion. Excluding the charge, we estimate Q2 earnings at $0.50 and full-year 2011 and 2012 EPS at $1.97 and $2.61, respectively, compared with $2.18 and $2.69 previously. While the dilution near-term can’t be ignored, the outlook for the company continues to improve with a more secure common capital base and steady improvements throughout the three segments."
For more ratings news on Morgan Stanley click here and for the rating history of Morgan Stanley click here.
Shares of Morgan Stanley closed at $26.48 yesterday.
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