Nomura's Thoughts on Morgan Stanley (MS) Q3 Results
Nomura Securities' bank analyst Glenn Schorr offered some quick thoughts on Morgan Stanley (NYSE: MS) third quarter results.
"Reasonable quarter for MS as FICC snapped back strong, M&A, debt underwriting and equities were solid, and margins and flows ticked higher in GWIM and asset mgmt. The comp ratio at the IB was in the 45% range, expenses were a little higher than expectations (but headcount is down 2% q/q) and the quarter included $280M in litigation costs and an almost $200M hit for the 14% buy in of MSSB. Progress
yes, but even with a much better FICC line and better (and soon to be more) GWIM, MS put up a 6ish% ROE. Stock’s not expensive at ~75% of adjusted TBV (for the rest of MSSB buy in), but still looks full on runrate earnings of ~$1.20."
Schorr has a Neutral rating and price target of $17 on MS.
For an analyst ratings summary and ratings history on Morgan Stanley click here. For more ratings news on Morgan Stanley click here.
Shares of Morgan Stanley are down 1.6 percent to $18.20.
"Reasonable quarter for MS as FICC snapped back strong, M&A, debt underwriting and equities were solid, and margins and flows ticked higher in GWIM and asset mgmt. The comp ratio at the IB was in the 45% range, expenses were a little higher than expectations (but headcount is down 2% q/q) and the quarter included $280M in litigation costs and an almost $200M hit for the 14% buy in of MSSB. Progress
yes, but even with a much better FICC line and better (and soon to be more) GWIM, MS put up a 6ish% ROE. Stock’s not expensive at ~75% of adjusted TBV (for the rest of MSSB buy in), but still looks full on runrate earnings of ~$1.20."
Schorr has a Neutral rating and price target of $17 on MS.
For an analyst ratings summary and ratings history on Morgan Stanley click here. For more ratings news on Morgan Stanley click here.
Shares of Morgan Stanley are down 1.6 percent to $18.20.