UBS Cuts Price Target on Morgan Stanley (MS) to $39 Following 3Q Results
UBS maintained a Buy rating on Morgan Stanley (NYSE: MS), and cut the price target to $39.00 (from $43.00), following the company's 3Q earnings results. Analyst Brennan Hawken said that the reaction to Morgan Stanley's results seems overdone, as expectations were high for the company.
Hawken commented, "Expectations were high for MS, as solid Equities results at most other bulge bracket firms drove MS shares higher last week and contributed to a difficult set-up. Therefore, while MS results were clearly disappointing, we believe many of the disappointing components of results were one-time in nature and should not translate into MS shares underperforming nearly 5% today (vs the S&P roughly flat). To that end, we are only lowering our estimates by 2%, to $3.20 in 2016 and to $3.55 in 2017, as a result of a more modest expansion of the PT margin in WM coupled with a moderately weaker outlook for the FICC business."
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Shares of Morgan Stanley closed at $32.32 yesterday.