CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
As a leading global investment bank, we think MS is poised to benefit from a potential rebound in M&A and debt/equity underwriting in the year ahead. We raise our 12-month target $15 to $105 on a forward P/E of 14.8x our 2024 earnings estimate, above the three-year historic average at 13.0x given our view of a cyclical rebound in MS’s businesses. We keep our earnings estimates for 2023 at $5.90 and 2024 at $7.10, both above consensus at $5.61 and $6.59. Even during a risk-off market, we think MS gained wallet share in the past year, with several European banks having retrenched from investment banking. The Fed’s signal of potential rate cuts in 2024 is likely to get corporates positioned for higher capital raising, debt refinancing, and targeted M&A, so long as the economy remains resilient and is expected to grow. The Wealth Management unit is the industry leader and assets under supervision are likely to grow with a higher equity market. We think this will benefit net interest income in Q4 2023 results.