Loading...
Back to narrative

MS: Richer Multiple And Buybacks Will Likely Limit Future Return Potential

Rising Compliance Pressures And Asset Migration Will Compress Revenues

MS logo
MS
AnalystLowTarget
Not Invested
Published 13 Jul 2025

Update shared on 21 Dec 2025

Fair value Increased 34%
n/a
n/a
AnalystLowTarget's Fair Value
n/a
Loading
1Y
43.4%
7D
-0.8%

Analysts have raised their price target on Morgan Stanley from approximately 101 dollars to about 136 dollars. This reflects increased confidence in the bank's higher projected revenue growth, improved profit margins, and a modestly richer future price to earnings multiple, despite a slightly higher discount rate.

What's in the News

  • Morgan Stanley added MUFG Securities EMEA plc as Co Lead Underwriter for its €150 million fixed income offering, which may broaden distribution and investor reach (Key Developments).
  • The bank reported third quarter 2025 net charge offs on loans and lending commitments of 63 million dollars, highlighting ongoing but manageable credit costs (Key Developments).
  • From July 1, 2025 to September 30, 2025, Morgan Stanley repurchased 7,440,032 shares for approximately 1.08 billion dollars, completing a 36,935,740 share, 4.59 billion dollar buyback program announced in June 2024 (Key Developments).

Valuation Changes

  • The fair value estimate has risen significantly from about 101 dollars to roughly 136 dollars, reflecting a higher intrinsic valuation for Morgan Stanley shares.
  • The discount rate has increased slightly from approximately 9.0 percent to about 9.7 percent, implying a modestly higher required return for investors.
  • Revenue growth has risen meaningfully from around 2.2 percent to roughly 4.0 percent, indicating stronger expected top line expansion.
  • The net profit margin has improved slightly from about 21.8 percent to roughly 22.6 percent, pointing to marginally better profitability expectations.
  • The future P/E has increased from approximately 13.8 times to about 15.7 times, suggesting a somewhat richer valuation multiple on projected earnings.

Have other thoughts on Morgan Stanley?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.