Morgan Stanley (MS) May Be Stronger Than Goldman Sachs (GS)
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An article from Barron's on Tuesday postulates that Morgan Stanley (NYSE: MS) may be a better investment at this time than Goldman Sachs Group Inc. (NYSE: GS).
The argument notes that Morgan Stanley has been moving in a more cohesive and stable mix, stemming from a large commitment to wealth management through its Smith Barney joint venture.
The firm also now has a client-oriented approach to institutional- trading and investment banking. Morgan Stanley is also using less of the firm's capital in private-equity deals and hedge funds.
Barron's notes that this style is where the securities industry is headed towards.
Howard Chen of Credit Suisse says that the Morgan Stanley's low valuation limits its downside. Chen recommends the stock and has a price target of $35, while also seeing the firm's earnings approaching $3 per share this year, up from $2.29 last year.
Since the markets have started a return to normalcy after the recession, Goldman Sachs has been the a Wall Street favorite, rising 70 percent since March 2009, while Morgan Stanley is up just 7 percent in the same time period.
Chen sees Morgan Stanley still having a great deal to prove going forward, starting with its fourth-quarter earnings on Thursday.
Shares of Morgan Stanley are down 24 cents to $28.74 in midday market movement on Tuesday.
The argument notes that Morgan Stanley has been moving in a more cohesive and stable mix, stemming from a large commitment to wealth management through its Smith Barney joint venture.
The firm also now has a client-oriented approach to institutional- trading and investment banking. Morgan Stanley is also using less of the firm's capital in private-equity deals and hedge funds.
Barron's notes that this style is where the securities industry is headed towards.
Howard Chen of Credit Suisse says that the Morgan Stanley's low valuation limits its downside. Chen recommends the stock and has a price target of $35, while also seeing the firm's earnings approaching $3 per share this year, up from $2.29 last year.
Since the markets have started a return to normalcy after the recession, Goldman Sachs has been the a Wall Street favorite, rising 70 percent since March 2009, while Morgan Stanley is up just 7 percent in the same time period.
Chen sees Morgan Stanley still having a great deal to prove going forward, starting with its fourth-quarter earnings on Thursday.
Shares of Morgan Stanley are down 24 cents to $28.74 in midday market movement on Tuesday.
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