Morgan Stanley (MS-PK)

Thursday

3:45 AM

ThesisStrong growth in wealth management and trading revenues amidst rising interest rates is enhancing investor sentiment.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$115.0B	$81.9B	$86.5B
Rev. Growth	+11.5%	-28.8%	+5.6%
EPS	$10.34	$12.90	$13.70
EPS Growth	+28.6%	+24.8%	+6.2%
P/E (fwd)	2.1×	1.7×	1.6×

★ Analysts see FY2027 revenue reaching $86.5B — +5.6% growth in a single year.

What’s Driving the Stock

01Wealth management AUM increased by 15% YoY, indicating strong client inflows and retention.
02Trading revenues are projected to rise by 20% in Q3 due to increased market volatility.
03Cost-cutting initiatives expected to reduce operating expenses by $500M annually.
04Increased M&A activity in the tech sector could drive higher investment banking fees.
05Digital transformation in financial services
06Increased focus on sustainable investing
07Changes in interest rates impacting net interest margins
08Market volatility affecting trading revenues

FY2025 Snapshot

Revenue: $115.0B
Rev. Growth: +11.5%
Gross Margin: 57.1%
Op. Margin: 19.1%
Net Margin: 14.7%
Net Income: $16.9B
NI Growth: +25.9%
EPS: $10.34
1Y Return: -6.9%

MS-PK Chart

My Notes

"Our diversified business model positions us well to capitalize on current market conditions."
Moat: Morgan Stanley's brand reputation and established client relationships provide a durable competitive advantage.
growth - due to strong revenue growth and potential for expanding wealth management services.
Rising interest rates generally improve net interest margins, enhancing profitability for Morgan Stanley's lending and wealth management…
Watch on earnings: Federal Funds Rate, 10-Year Treasury Yield, Wealth Management AUM.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $81.9B to $86.5B as wealth management aum increased by 15% yoy, indicating strong client inflows and retention.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Explore More

S&P 500 Screener

Filter and sort all 500 stocks

Market Movers

Today's biggest gainers and losers

Market Heatmap

Visual sector performance