Morgan Stanley stock rating downgraded to Hold by Freedom Broker

Investing.com - Freedom Broker has downgraded Morgan Stanley (NYSE:MS) from Buy to Hold while maintaining a price target of $126.00 per share. The stock, currently trading near its 52-week high at $140.97, has shown impressive momentum with a 39.6% return over the past year. According to InvestingPro analysis, Morgan Stanley is currently trading close to its Fair Value.

Morgan Stanley reported second-quarter 2025 earnings per share of $2.13, representing a 17% year-over-year increase but an 18% quarter-over-quarter decrease. The results exceeded the FactSet consensus estimate by 7.5%.

The financial institution posted revenue of $16.79 billion for the quarter, up 12% year-over-year but down 5% quarter-over-quarter, surpassing analysts’ expectations by 4.5%.

Freedom Broker noted that Morgan Stanley demonstrated "the inherent stability of its diversified business model," with strong performance in equity trading and asset management offsetting weakness in investment banking.

Despite the strong quarterly performance and management’s decision to increase dividends and announce a new share buyback program, Freedom Broker lowered its recommendation, citing valuation concerns at the current price level.

In other recent news, Morgan Stanley reported strong financial results for the second quarter of 2025, with earnings per share of $2.13, exceeding the forecasted $1.98. The company’s revenue reached $16.8 billion, surpassing expectations of $16.01 billion. Additionally, Evercore ISI raised its price target for Morgan Stanley to $150 from $146, maintaining an Outperform rating. The adjustment followed the earnings report, highlighting notable performances in Wealth Management and Investment Management divisions.

In another development, Morgan Stanley has hired Ashish Kumbhat from Bank of America to co-lead its bank advisory group. Kumbhat will work alongside Elizabeth Jacobs as co-head of banks and diversified financials. Furthermore, Citizens JMP reiterated a Market Perform rating on Morgan Stanley stock, with analyst Brian McKenna noting the company’s strong market positioning despite challenging conditions.

Lastly, Morgan Stanley is involved in Via Transportation’s revived IPO plans, working alongside Goldman Sachs and Allen & Co. on the listing. These developments reflect Morgan Stanley’s strategic moves and financial performance in the current market environment.

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