- Morgan Stanley (NYSE: MS) reported third-quarter earnings of $3.03 per share on revenue of $20.34 bn, exceeding Wall Street expectations.
- The stock closed at $181.52 on October 14, down 2.74%, despite a 41% increase in equities trading revenue and record wealth management inflows.
- Analysts’ 12-month price targets range from $184 to $262, with an average forecast of $222.14, implying approximately 22% upside from the latest closing price.
Morgan Stanley (NYSE: MS) shares declined 2.74% to $181.52 on October 14, 2026, even after the investment bank reported stronger-than-expected third-quarter earnings. Analysts remain broadly positive on the stock, although recent target revisions show greater caution about valuation and earnings growth.
According to S&P Global Market Intelligence data covering 26 analysts, Morgan Stanley has a consensus Buy rating and an average 12-month price target of $222.14. Individual forecasts range from $184 to $262, reflecting differing expectations for trading revenue, wealth management growth and profitability.
The average target represents approximately 22.4% potential upside from the October 14 closing price. These estimates largely predate the latest earnings release and may change as analysts update their financial models.
Morgan Stanley reported third-quarter net income of approximately $4.9 bn, equivalent to $3.03 per diluted share, compared with $2.80 a year earlier. Revenue increased from $18.2 bn to $20.34 bn, exceeding analysts’ expectations of approximately $19.93 bn.
Equities trading revenue increased 41% to $5.8 bn, supporting an 18% revenue increase in Institutional Securities to approximately $10 bn. Fixed-income trading revenue declined about 7% to $2.01 bn.
Wealth Management revenue rose approximately 10% to $9.07 bn, with $232 bn in net new assets during the quarter. Morgan Stanley reported a 22.6% return on tangible common equity, providing further evidence of profitability despite weakness in parts of its trading business.
Recent analyst forecasts show a wide range of expectations.
- Barclays analyst Jason Goldberg maintains an Overweight rating and a $262 target, the most bullish among major brokerages.
- Bank of America’s Ebrahim Poonawala has a Buy rating and a $250 target, while RBC Capital Markets analyst Gerard Cassidy maintains Sector Perform with a $243 forecast.
- UBS analyst Erika Najarian reduced her target from $260 to $236 but retained a Buy rating. Wells Fargo analyst Mike Mayo lowered his forecast from $240 to $223 with an Equal Weight rating.
- BMO Capital Markets analyst Brennan Hawken cut his target to $215 while maintaining Outperform.
- TD Cowen initiated coverage with a Hold rating and a $210 target, while Citigroup analyst Keith Horowitz reduced his target from $235 to $210, maintaining Neutral.
- JPMorgan analyst Kian Abouhossein has a Neutral rating and a $195 target. These forecasts were issued before Morgan Stanley’s October 14 earnings announcement.
Bank stocks have faced similar pressure despite earnings growth. Wells Fargo reported third-quarter earnings of $1.87 per share, above expectations, although revenue of $21.87 bn missed consensus estimates.
Morgan Stanley analyst Manan Gosalia subsequently lowered his price target on Wells Fargo shares from $102 to $101, maintaining an Overweight rating. RBC Capital Markets reduced its Wells Fargo target to $92, Citigroup to $88 and Keefe, Bruyette & Woods to $90.
For Morgan Stanley itself, the principal questions are whether equity trading can sustain its recent performance and whether wealth management inflows will continue supporting earnings.
The bank’s strong third-quarter results provide support for analysts’ positive forecasts, but falling fixed-income revenue and weaker market sentiment remain risks to the stock’s near-term performance.
