50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Morgan Stanley cut at JPMorgan as stock offers limited upside

Published 01/17/2024, 08:38 AM
Updated 01/17/2024, 08:40 AM
© Reuters.  Morgan Stanley (MS) cut at JPMorgan as stock offers limited upside
MS
-

JPMorgan analysts downgraded shares of Morgan Stanley (MS) to Neutral from Overweight, lowering their price target for the stock to $87 from $94 per share in a note Wednesday.

The firm made the call following Morgan Stanley's latest earnings release. JPMorgan believes Morgan Stanley offers limited upside based on its current valuation.

"We see MS' excellent acquisitions benefits largely discounted, Equity S&T market share plateauing and see limited stock specific catalysts in the near-term which have been a source of outperformance for the stock in the past," wrote analysts at JPMorgan.

"While MS offers significant gearing to improvement in capital markets activity, we reflect this in our estimates with IBD revenues +47% YoY in our 2024E forecasts and we would seek any further upside to this exposure through GS (OW), which is our preferred name in US IBs while we prefer UBS (OW) global exposure for WM gearing," they added.

JPMorgan also cut its 2024/25/26E adjusted EPS forecasts for MS by 4%/3%/2% based on lower revenues and higher costs. They expect consensus expectations to move lower following the results adjustments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.