Morgan Stanley price target raised to $161 from $126 at Freedom Capital

Investing.com - Freedom Capital Markets has raised its price target on Morgan Stanley (NYSE:MS) to $161.00 from $126.00 while maintaining a Hold rating on the stock. The investment bank, a prominent player in the Capital Markets industry, has shown impressive momentum with a 45.91% price return over the past six months.

The revision follows Morgan Stanley’s third-quarter 2025 results, which significantly exceeded market expectations. The investment bank reported earnings per share of $2.80, representing a 49% year-over-year increase and a 31% quarter-over-quarter rise, surpassing forecasts by 33.3%. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting continued positive momentum.

Revenue reached $18.2 billion, up 18% year-over-year and 9% quarter-over-quarter, exceeding market projections by 9.2%. The strong financial performance was primarily driven by growth in investment banking and continued asset inflows in the asset management division.

Freedom Capital Markets based its new target price on a price-to-earnings ratio of 14.2x and forward earnings per share of $11.4 for the period spanning Q4 2026 to Q3 2027.

Despite the significant price target increase, the firm maintained its Hold recommendation on Morgan Stanley stock.

In other recent news, Morgan Stanley’s third-quarter performance has drawn significant attention from analysts and investors alike. The financial services company reported earnings per share of $2.80, surpassing analyst consensus by 32%, with revenues exceeding Street estimates by 10%. This strong performance was bolstered by investment banking fees totaling $2.1 billion, which exceeded expectations by 23%. In response to these results, Jefferies raised its price target for Morgan Stanley to $186 from $175, maintaining a Buy rating and adjusting its 2026 earnings per share estimate upward by 6% to $10.60. Similarly, KBW increased its price target to $184 from $176, citing an "exceptionally strong quarter" driven by momentum in various business segments.

Wells Fargo also revised its price target for Morgan Stanley to $177 from $165, maintaining an Equal Weight rating, while UBS reiterated its Neutral rating with a $165 price target following the bank’s robust quarterly results. Meanwhile, Polish retailer Empik SA is preparing for an initial public offering on the Warsaw Stock Exchange in 2026, with assistance from advisers like Morgan Stanley and Trigon Dom Maklerski SA. These developments underscore a period of significant activity for Morgan Stanley and its involvement in major market events.

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