Street View: Morgan Stanley gains analyst backing despite market dip

On Wednesday, Morgan Stanley's MS.N profit beat Wall Street estimates in the second quarter as its traders cashed in on volatile markets

The bank beat forecasts with a net income of $3.5 billion, or $2.13 per share, in the quarter

Stock rated "hold" from an average of 23 analysts' ratings; median PT is $145, per data compiled by LSEG

STAN-TALL IN THE MARKET

KBW ("outperform," PT: $160) says MS’s shift toward wealth and investment management has led to a structurally higher Return on Tangible Common Equity (ROTCE)

BofA Global Research ("buy," PO: $154) says while it was a strong quarter in markets and wealth management, the stock likely fell because expectations were high and MS’s investment banking results were much weaker than Goldman Sachs's GS.N

Citizens ("market perform") sees strong growth potential and opportunities to expand customer wallet share through the “Integrated Firm,” while management’s focus on efficiency and cost optimization supports confidence in achieving positive operating leverage

Morningstar (fair value: $127) sees MS’s strategy as well-suited, as it makes good use of the firm’s strengths in wealth management, investment banking, and trading

"We're constructive regarding the industry outlook, as banks should benefit from improving investment banking appetite and a lighter regulatory touch," adds Morningstar