Morgan Stanley stock price target raised to $177 from $165 at Wells Fargo

Published 16/10/2025, 10:52
Morgan Stanley stock price target raised to $177 from $165 at Wells Fargo

Investing.com - Wells Fargo maintained its Equal Weight rating on Morgan Stanley (NYSE:MS) while raising its price target to $177.00 from $165.00 following the bank’s third-quarter earnings report. The stock, currently trading near its 52-week high of $166.77, has delivered an impressive 53% return over the past six months.

Morgan Stanley reported earnings per share of $2.80 for the third quarter of 2025, beating analyst expectations with a 70-cent EPS beat. The outperformance reflected stronger top and bottom line results, with particularly strong performance in capital markets. The company, which has raised its dividend for 11 consecutive years, currently offers a 2.46% dividend yield.

Wells Fargo noted that Morgan Stanley’s wealth management division showed strong growth, aided by flows from IPOs, while the investment management segment delivered decent results. The analyst’s core EPS calculation of $2.77 excludes a $50 million tax benefit.According to InvestingPro, Morgan Stanley maintains a "GOOD" Financial Health score, with 10+ additional exclusive insights available for subscribers.

Based on the quarterly performance, Wells Fargo increased its 2026 EPS estimate to $9.84 from $8.90, while also raising its 2027 EPS estimate by 70 cents to $11.80. The new price target is based on a 15x multiple of the revised 2027 EPS estimate.

The analyst characterized the current market environment as "Goliath is Winning," noting that Morgan Stanley was one of five financial institutions that beat earnings expectations in the quarter.

In other recent news, Morgan Stanley reported impressive third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $2.80, compared to the anticipated $2.09. The company also achieved record revenues of $18.2 billion, exceeding forecasts by 9.36%. This strong performance was driven by gains in investment banking and trading activities. Following these results, Jefferies raised its price target on Morgan Stanley to $186 from $175, while maintaining a Buy rating. Similarly, Evercore ISI increased its price target to $175 from $165, keeping an Outperform rating. Citizens analyst Brian McKenna reiterated a Market Perform rating, noting that Morgan Stanley’s Global Wealth Management net interest income grew 4% sequentially, surpassing management’s guidance. These developments highlight the company’s robust performance and strategic direction.

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