Morgan Stanley price target raised to $150 from $146 at Evercore ISI

Investing.com - Evercore ISI has raised its price target on Morgan Stanley (NYSE:MS) to $150.00 from $146.00 while maintaining an Outperform rating on the stock. Currently trading at $139.79, the investment bank’s shares are near their 52-week high of $145.16, reflecting a strong year-to-date return of 12.83%. According to InvestingPro data, analyst targets for the stock range from $110 to $160.

The price target adjustment follows Morgan Stanley’s second-quarter earnings report, which Evercore ISI described as "pretty good," particularly highlighting the performance in Wealth Management and Investment Management divisions, along with decent trading fees. With a market capitalization of $224.27 billion and impressive revenue growth of 17.42% in the last twelve months, Morgan Stanley continues to demonstrate its strength as a prominent player in the Capital Markets industry. InvestingPro subscribers can access detailed financial health scores and 12 additional exclusive tips about Morgan Stanley’s performance and outlook.

Morgan Stanley’s stock traded down approximately 1% following the earnings announcement, despite the positive aspects of the report. Evercore noted that management’s guidance for net interest income to remain around recent levels in the third quarter was already reflected in consensus estimates.

The investment bank’s results in certain areas fell short compared to peers, with Advisory and Debt Capital Markets down 13% and 21% year-over-year respectively, though Equity Capital Markets performed well. Evercore also pointed to the high expectations for Morgan Stanley, with its stock up 40% from earlier lows this year.

Evercore ISI has increased its 2025 earnings estimate for Morgan Stanley to $8.75 from $8.31, largely due to the quarterly earnings beat, while its 2026 estimate rose to $9.45 from $9.36, primarily driven by higher management fees in Global Wealth Management and Investment Management.

In other recent news, Morgan Stanley reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $2.13, surpassing the forecasted $1.98. The company’s revenue reached $16.8 billion, exceeding expectations of $16.01 billion. Despite these positive results, Citizens JMP reiterated a Market Perform rating on Morgan Stanley, citing valuation concerns as the primary reason for maintaining a neutral stance. In an effort to bolster its bank advisory group, Morgan Stanley has hired Ashish Kumbhat from Bank of America. Kumbhat’s experience includes working on significant mergers and acquisitions, such as First Citizens BancShares Inc (NASDAQ:FCNCA).’s takeover of Silicon Valley Bank. Additionally, Morgan Stanley is involved in Via Transportation’s revived initial public offering plans, working alongside Goldman Sachs and Allen & Co. These developments highlight Morgan Stanley’s strategic moves in both financial performance and human resources.

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