2024-07-19 10:22:53 ET
Summary
- Morgan Stanley's stock returns have underperformed its peers and industry benchmark over the last year.
- Q2 earnings came in very strong, beating expectations. At the same time, its bottom line grew by 44%, thanks in part to higher investment banking fees.
- Despite potential challenges in net interest income and asset management fees, the brighter outlook from capital markets more than offsets these cons, suggesting a buy rating.
Among major financial institutions in the US with investment banking and wealth management divisions, Morgan Stanley ( MS ) has been the clear underperformer for over one year. MS has lagged not only in its peers but also in its industry benchmark, proxied by the SPDR S&P Capital Markets ETF ( KCE ) by around -5%. On Tuesday 16th, the firm reported Q2 earnings and in this writing, I will be discussing them, to see if there is a change in the bullish analysis that I published in April....
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For further details see:
Morgan Stanley: Strong Q2 Earnings; I Reiterate My Buy Rating