Morgan Stanley stock rises as Citizens reiterates Market Perform rating

Published 16/10/2025, 10:18
Morgan Stanley stock rises as Citizens reiterates Market Perform rating

Investing.com - Morgan Stanley (NYSE:MS) stock rose after Citizens analyst reiterated a Market Perform rating on the financial services company following its third-quarter results. The stock, currently trading near its 52-week high of $166.77, has demonstrated remarkable strength with a 53% gain over the past six months.

The company delivered strong performance across key metrics, exceeding market expectations in several areas. Morgan Stanley’s Global Wealth Management (GWM) net interest income grew 4% sequentially, outperforming management’s guidance of approximately flat results for the third quarter. According to InvestingPro data, the company maintains a healthy P/E ratio of 15.9 and has achieved impressive revenue growth of 17.6% over the last twelve months.

The firm’s Global Wealth Management net new assets reached $81 billion, representing a 5% net new asset rate. This exceeded what Citizens had identified as the market’s expectation of approximately $75 billion, which would have represented just below a 4.6% net new asset rate.

Morgan Stanley also demonstrated improved efficiency with a firmwide compensation ratio of 40.8%, significantly better than Citizens’ model projection of 43.1%. This lower compensation ratio served as an upside driver for earnings per share.

Citizens noted that while the market had anticipated strong results with potential for outperformance, the company’s ability to exceed expectations across multiple key metrics was particularly noteworthy.

In other recent news, Morgan Stanley has 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 achieved record revenues of $18.2 billion, exceeding forecasts by 9.36%. This strong financial performance highlights the company’s strategic direction and financial health. Additionally, Morgan Stanley’s Global Wealth Management net interest income experienced 4% sequential growth, surpassing management’s guidance of approximately flat sequential results for the third quarter.

In related developments, Citizens analyst Brian McKenna reiterated a Market Perform rating for Morgan Stanley. The analyst noted that several key performance metrics exceeded expectations, contributing to the company’s positive outlook. These recent developments underscore Morgan Stanley’s robust financial standing and strategic execution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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