Morgan Stanley stock jumps as Citizens reiterates Market Perform rating

Investing.com - Morgan Stanley (NYSE:MS) stock jumped after Citizens analyst Brian McKenna reiterated a Market Perform rating on the financial services company. The stock, currently trading near its 52-week high of $166.77, has delivered an impressive 53% return over the past six months. According to InvestingPro data, the company maintains a GOOD overall financial health score.

The analyst noted that while the market had anticipated strong results with potential outperformance, several key performance metrics exceeded expectations. Morgan Stanley’s Global Wealth Management (GWM) net interest income (NII) delivered 4% sequential growth, surpassing management’s guidance of approximately flat sequential results for the third quarter. The company, with a market capitalization of $259.64 billion, has maintained its position as a prominent player in the Capital Markets industry while consistently growing its dividend for 11 consecutive years, currently offering a 2.46% yield.

GWM net new assets (NNA) reached $81 billion, representing a 5% NNA rate, which exceeded the analyst’s benchmark of $75 billion that would have been considered "good" based on investor conversations. McKenna indicated that the actual result was "very good."

The company also demonstrated stronger expense control than anticipated, with a firmwide compensation ratio of 40.8% compared to the analyst’s model projection of 43.1%. This lower ratio contributed to earnings per share outperformance.

McKenna commented that these results were supported by "stronger revenues and also a better revenue outlook than from earlier in the year where accruals started," though no specific price target was mentioned in the available information.

In other recent news, Morgan Stanley reported its third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $2.80, compared to the anticipated $2.09. The company achieved record revenues of $18.2 billion, exceeding forecasts by 9.36%. These results highlight Morgan Stanley’s strong financial performance and strategic direction. Additionally, the earnings call noted the company’s robust performance, which contributed to investor confidence. Analysts had projected lower figures, making this outcome a significant achievement for Morgan Stanley. This development is part of a series of recent updates concerning the company’s financial health. Investors often closely monitor such earnings reports, as they provide insights into the company’s operational success and future potential.

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