Erste Group Bank Weighs in on Morgan Stanley FY2026 Earnings

Morgan Stanley (NYSE:MS) – Equities research analysts at Erste Group Bank lowered their FY2026 earnings estimates for shares of Morgan Stanley in a research report issued to clients and investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the financial services provider will earn $12.79 per share for the year, down from their previous forecast of $12.83. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Morgan Stanley’s current full-year earnings is $12.66 per share.

Morgan Stanley (NYSE:MS) last issued its quarterly earnings results on Wednesday, July 15th. The financial services provider reported $3.46 earnings per share for the quarter, beating analysts’ consensus estimates of $2.89 by $0.57. Morgan Stanley had a net margin of 15.65% and a return on equity of 19.31%. The firm had revenue of $21.35 billion for the quarter, compared to analyst estimates of $19.67 billion. During the same period last year, the company posted $2.13 EPS. Morgan Stanley’s quarterly revenue was up 27.1% compared to the same quarter last year.

MS has been the subject of a number of other research reports. Wells Fargo & Company reduced their target price on Morgan Stanley from $240.00 to $223.00 and set an “equal weight” rating for the company in a report on Friday, September 25th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $243.00 price target on shares of Morgan Stanley in a research note on Monday, July 20th. Freedom Capital upgraded Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. Zacks Research cut Morgan Stanley from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 30th. Finally, Jefferies Financial Group raised Morgan Stanley from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Morgan Stanley has an average rating of “Moderate Buy” and an average target price of $219.43.

Morgan Stanley Price Performance

NYSE:MS opened at $189.94 on Tuesday. Morgan Stanley has a 12 month low of $151.88 and a 12 month high of $232.25. The stock has a 50 day moving average of $207.10 and a two-hundred day moving average of $203.20. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 3.65. The firm has a market cap of $299.60 billion, a P/E ratio of 15.36, a price-to-earnings-growth ratio of 1.26 and a beta of 1.22.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Purpose Unlimited Inc. purchased a new stake in Morgan Stanley in the 4th quarter valued at $25,000. Marquette Asset Management LLC increased its stake in shares of Morgan Stanley by 143.4% in the 2nd quarter. Marquette Asset Management LLC now owns 129 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 76 shares during the last quarter. Atlatl Advisers LLC acquired a new stake in shares of Morgan Stanley in the 2nd quarter worth $28,000. Hughes Financial Services LLC increased its stake in shares of Morgan Stanley by 55.7% in the 2nd quarter. Hughes Financial Services LLC now owns 137 shares of the financial services provider’s stock worth $29,000 after acquiring an additional 49 shares during the last quarter. Finally, Bayban raised its holdings in shares of Morgan Stanley by 72.5% during the 1st quarter. Bayban now owns 188 shares of the financial services provider’s stock worth $31,000 after acquiring an additional 79 shares during the period. 84.19% of the stock is currently owned by institutional investors and hedge funds.

Morgan Stanley Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were paid a $1.15 dividend. This is a positive change from Morgan Stanley’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend was Friday, July 31st. This represents a $4.60 dividend on an annualized basis and a yield of 2.4%. Morgan Stanley’s dividend payout ratio is 37.19%.

Morgan Stanley declared that its board has approved a stock repurchase program on Wednesday, June 24th that authorizes the company to buy back $20.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 5.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Trending Headlines about Morgan Stanley

Here are the key news stories impacting Morgan Stanley this week:

• Positive Sentiment: Morgan Stanley’s earnings release is scheduled for Wednesday morning, creating a near-term catalyst. Investors will look for evidence that strong wealth-management inflows, equity-market activity and investment-banking revenue can offset pressure from higher funding costs. Morgan Stanley Reports Earnings Tomorrow: What To Expect
• Positive Sentiment: The firm’s research franchise remains influential: Morgan Stanley named eBay a top internet pick and raised its price target, helping drive gains in eBay shares. While not a direct earnings benefit, the call highlights the reach of MS’s equity-research and advisory businesses. eBay Named Morgan Stanley Top Pick
• Neutral Sentiment: Morgan Stanley analysts upgraded Sallie Mae to a Buy-equivalent rating and downgraded Ally Financial to a Hold-equivalent rating. These calls may support the firm’s research profile but are unlikely to materially change Morgan Stanley’s near-term financial results. Sallie Mae upgraded at Morgan Stanley
• Negative Sentiment: Market commentary warns that rising Treasury yields, a stronger dollar and elevated energy prices are tightening U.S. financial conditions. That backdrop could pressure borrowing demand, investment-banking activity and trading volumes, although MS strategists said the bond market may be doing some of the Federal Reserve’s work. Morgan Stanley strategist on bond-market conditions
• Negative Sentiment: Investors are also weighing expectations for fiscal 2027 earnings amid uncertainty over whether high rates will curb dealmaking and lending growth. With shares trading below their recent moving averages, an earnings miss or cautious outlook could add to selling pressure. Analysts Set Expectations for Morgan Stanley FY2027 Earnings

About Morgan Stanley

Morgan Stanley is a global financial services firm serving corporations, governments, financial institutions, individuals and other investors. The company provides investment banking and advisory services, including mergers and acquisitions advice, equity and debt underwriting, securities sales and trading, and corporate lending.

Through its Wealth Management business, Morgan Stanley offers financial planning, brokerage, investment advisory and banking services to individual investors, businesses and institutions.