Nvidia and TSMC to unveil first domestic wafer for Blackwell chips, Axios reports
Investing.com - Morgan Stanley (NYSE:MS), a prominent player in the Capital Markets industry with a market capitalization of $258.75 billion, maintained its Neutral rating and $165.00 price target at UBS following the bank’s strong third-quarter performance that significantly exceeded market expectations. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
The financial services giant reported earnings per share of $2.80, beating analyst consensus by 32%, while revenues outperformed Street estimates by 10%. Investment banking fees totaled $2.1 billion, exceeding expectations by 23%, with particularly strong results in equity capital markets and debt capital markets, which beat forecasts by 31% and 41% respectively. The company’s impressive performance is reflected in its robust revenue growth of 17.59% over the last twelve months, as reported by InvestingPro.
Markets revenue reached $6.4 billion, surpassing projections by 12%, primarily driven by equities trading which exceeded estimates by 21%. The Wealth Management division achieved its target pre-tax margin of 30% for the quarter, with total revenue of $8.2 billion beating consensus by 5%, bolstered by transaction revenues that came in 24% above expectations.
Net new assets totaled $81 billion, roughly in line with UBS’s expectations but 12% higher than Street forecasts. The Investment Management division continued to see positive flows, particularly from Parametric, with revenues 5% higher than consensus estimates.
Despite compensation expenses running 14 cents per share higher than anticipated, the revenue outperformance of 78 cents per share more than compensated for the increased costs. Morgan Stanley’s CET1 capital ratio improved to 15.2%, up 20 basis points quarter-over-quarter, potentially providing flexibility for capital deployment. The bank maintains a healthy 2.46% dividend yield and has raised its dividend for 11 consecutive years. InvestingPro subscribers have access to 10+ additional insights about Morgan Stanley’s financial health and growth prospects through the comprehensive Pro Research Report.
In other recent news, Morgan Stanley reported strong third-quarter 2025 earnings, with earnings per share reaching $2.80, surpassing analyst expectations by 70 cents. This performance was bolstered by robust results in capital markets. Following these results, several financial firms adjusted their outlooks on Morgan Stanley. Wells Fargo raised its stock price target to $177 while maintaining an Equal Weight rating. Jefferies increased its price target to $186, maintaining a Buy rating and revising its 2026 earnings per share estimate upward by 6% to $10.60. Evercore ISI also raised its price target to $175, keeping an Outperform rating, citing strength in investment banking and trading activities. Meanwhile, Citizens reiterated a Market Perform rating, noting that Morgan Stanley’s Global Wealth Management net interest income grew 4% sequentially, exceeding management’s guidance. These developments reflect a positive consensus among analysts regarding Morgan Stanley’s recent performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.