Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - Evercore ISI reiterated an Outperform rating on Morgan Stanley stock (NYSE:MS) and maintained a $190.00 price target following the company’s first-quarter results.
Morgan Stanley reported first-quarter 2026 earnings per share of $3.43, beating the firm’s estimate of $2.92 and the Street consensus of $3.02. The company posted a 27% return on tangible common equity on a common equity tier 1 ratio of 15.1%.The stock has surged 70% over the past year, trading at $191.39, just shy of its 52-week high of $192.68. According to InvestingPro analysis, 10 analysts have revised their earnings upwards for the upcoming period, though the stock currently trades above its Fair Value. For deeper insights into Morgan Stanley’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities.
Advisory revenue rose 74% year-over-year, while equity trading increased 25% and fixed income, currencies and commodities trading gained 29%. Underwriting came in below Street expectations.
Wealth management revenue climbed 16% with margins at 30.4%, or approximately 31% excluding severance costs, up 380 basis points year-over-year. The division recorded $118 billion in net new assets, representing a 6.5% annualized growth rate, including a record $54 billion in fee-based flows.
Investment management revenue declined 4% as equity outflows offset strength in Parametric and fixed income products. Evercore ISI noted Morgan Stanley’s wealth management platform demonstrated operating leverage and resilient flows despite geopolitical uncertainty.
In other recent news, Morgan Stanley’s Chief Executive Officer Ted Pick described the $1.8 trillion private credit market as experiencing an "adolescent moment," indicating increased scrutiny of both lenders and borrowers. The bank has also redirected capital, freed by relaxed U.S. regulations, into its prime brokerage and macro trading desks, according to Chief Financial Officer Sharon Yeshaya. This move follows the easing of the enhanced supplementary leverage ratio, a requirement that had previously constrained Wall Street firms.
Morgan Stanley released an AI disruption tracker, highlighting that while artificial intelligence is causing some displacement, its overall impact on the labor market remains limited. The tracker noted that high-AI-exposure occupations show slightly higher unemployment, but the effect on aggregate unemployment is minimal. Additionally, U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell met with Morgan Stanley and other major bank executives to discuss cybersecurity risks associated with Anthropic’s latest AI model.
Meanwhile, Goldman Sachs reported stronger first-quarter earnings, benefiting from robust dealmaking and equities trading, although its trading miss led to a drop in its stock price, affecting other bank stocks, including Morgan Stanley. These developments reflect the ongoing dynamics and challenges within the financial sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.