Interest Rates and Market Conditions: Interest rates are declining while U.S.-China trade tensions rise, leading to volatility in markets. Despite concerns over non-bank lenders, major U.S. banks reported positive earnings, with a significant portion exceeding EPS and revenue estimates.
Credit Concerns and Bank Performance: Recent warnings from JPMorgan Chase's CEO about economic vulnerabilities have resurfaced credit concerns, particularly affecting regional banks like Zions Bancorporation and Western Alliance, which experienced significant stock declines.
Financial Sector Growth: The finance sector has shown strong earnings growth of over 20% year-on-year, with a favorable regulatory environment and improving credit demand, positioning it well compared to the broader S&P 500 index.
Future Outlook for Financials: With the Federal Reserve cutting interest rates, the banking sector could benefit from a steepening yield curve, enhancing net interest margins, provided that healthy credit demand continues to support this growth.
Wall Street analysts forecast MS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MS is 185.00 USD with a low forecast of 132.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast MS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MS is 185.00 USD with a low forecast of 132.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 183.320
Low
132.00
Averages
185.00
High
219.00
Current: 183.320
Low
132.00
Averages
185.00
High
219.00
Keefe Bruyette
Outperform
upgrade
$202 -> $210
2026-01-16
Reason
Keefe Bruyette
Price Target
$202 -> $210
AI Analysis
2026-01-16
upgrade
Outperform
Reason
Keefe Bruyette raised the firm's price target on Morgan Stanley to $210 from $202 and keeps an Outperform rating on the shares. The firm has a constructive outlook looking ahead, the analyst tells investors in a research note.
RBC Capital
Sector Perform
maintain
$185 -> $207
2026-01-16
Reason
RBC Capital
Price Target
$185 -> $207
2026-01-16
maintain
Sector Perform
Reason
RBC Capital raised the firm's price target on Morgan Stanley to $207 from $185 and keeps a Sector Perform rating on the shares. The company's diversified investment services business model, with three primary growth engines - Institutional Securities, Wealth Management and Investment Management - delivered strong results in the quarter, led by its premier investment banking and trading businesses, the analyst tells investors in a research note. Morgan's Stanley's Wealth Management division also generated a record 31.0% pre-tax margin, and its strong excess capital position should allow the bank to reward shareholders with common share repurchases and increased dividends, the firm added.
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BofA
Buy
maintain
$210 -> $220
2026-01-16
Reason
BofA
Price Target
$210 -> $220
2026-01-16
maintain
Buy
Reason
BofA raised the firm's price target on Morgan Stanley to $220 from $210 and keeps a Buy rating on the shares following Q4 core EPS of $2.73 having "handily beat" the firm's and consensus estimates. Following the report, the firm raised its FY26 EPS estimate 4.5% to $11.45, driven by higher revenues.
HSBC
Saul Martinez
Hold
maintain
$131 -> $132
2026-01-07
Reason
HSBC
Saul Martinez
Price Target
$131 -> $132
2026-01-07
maintain
Hold
Reason
HSBC analyst Saul Martinez raised the firm's price target on Morgan Stanley to $132 from $131 and keeps a Hold rating on the shares. Bank stocks have pulled back, offering selective opportunities to add exposure, says the analyst, who raised the firm's 2025-26 adjusted EPS estimates among the group by about 1%-7% to incorporate higher net interest income, investment banking fees, and share repurchase estimates.
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
