Street Reports

Analyst’s Report Recap: Morgan Stanley (NYSE:MS)


The shares of Morgan Stanley (NYSE:MS)currently has mean rating of 2.4 while 11 analyst have recommended the shares as ‘BUY’ ,4 recommended as ‘OUTPERFORM’ and 11 recommended as ‘HOLD’.The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell

The mean price target for the shares of Morgan Stanley (NYSE:MS)is at $31.32 while the highest price target suggested by the analysts is $47.00 and low price target is $22.50. The mean price target is calculated keeping in view the consensus of 22 brokerage firms.

The company’s mean estimate for sales for the current quarter ending Jun 16 is 8.42B by 20 analysts. The means estimate of sales for the year ending Dec 16 is 32.50B by 23 analysts.

The average estimate of EPS for the current fiscal quarter for Morgan Stanley (NYSE:MS)stands at $0.62 while the EPS for the current year is fixed at $2.37 by 24.00 analysts

The next one year’s EPS estimate is set at 2.99 by 26.00 analysts while a year ago the analysts suggested the company’s EPS at $2.37. The analysts also projected the company’s long-term growth at 9.95% for the upcoming five years

In its latest quarter ended on 31 Mar 2016 , Morgan Stanley (NYSE:MS)reported earnings of $0.55. The posted earnings topped the analyst’s consensus by $0.09 with the surprise factor of 19.60%. In the matter of earnings surprises, the term ‘Cockroach Effect’ is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Morgan Stanley (NYSE:MS) traded up +3.41% during trading on Friday, hitting $27.29 . The stock had a trading volume of 18.0 M shares. The firm has a 50 day moving average of $26.39 and a 200-day moving average of $26.76. The stock has a market cap of $52.86B and a price-to-earnings ratio of 12.02. On Jul 20, 2015 the shares registered one year high at $41.04 and the one year low was seen on Feb 11, 2016.

On June 20, 2016 Morgan Stanley (NYSE:MS) announced the launch of three new funds: U.S. Core Portfolio, Global Core Portfolio, and Global Concentrated Portfolio, making the Applied Equity Advisors (AEA) investment team’s strategies available in a mutual fund format for the first time.

Led by Andrew Slimmon and Phillip Kim, who will act as portfolio managers for the Portfolios, the AEA team has been managing capital for over 15 years, focusing on high net worth and institutional investors in a separate account structure. They are core equity managers who believe in a flexible approach to investing that provides an option for investors seeking a benchmark aware strategy that incorporates both quantitative and fundamental approaches to investing.

“We believe it’s important to be able to capture outperformance relative to the benchmark regardless of which style is in favor, value or growth,” said Slimmon. “By combining a factor-based approach with a dynamic fundamental overlay to drive stock selection in a high active-share portfolio, we’re able to pivot from growth to value and back in real time.”

The team’s framework seeks to capture 70 percent of the market’s returns using factor-based investing, with a dynamic fundamental overlay to drive high active share investing for the other 30 percent. AEA’s approach has created significant demand for the team’s products across vehicle structures, and the launch of these three new funds will support that demand.

Clients can expect the team to invest in a highly active portfolio of stocks with attractive valuations, above-average appreciation potential and competitive dividend yields. The team uses a combination of quantitative models and fundamental research.

Through a network of financial advisors and retail clients, as well as institutional accounts, the AEA team already managed combined AUM of $5.1 billion across its strategies as of March 31, 2016. The three new portfolios bring these opportunities to retail and institutional investors seeking a comprehensive and flexible way to capture returns in a mutual fund vehicle.

The portfolios vary by concentration and region: the U.S. Core Portfolio will generally consist of 30 to 60 stocks with the flexibility to invest up to 20 percent in non-U.S. equities; the Global Core Portfolio will generally consist of 30 to 60 stocks and typically invest at least 40 percent in non-U.S. equities under normal market conditions; and the Global Concentrated Portfolio will generally consist of approximately 15 to 20 high-conviction stocks and typically invest at least 40 percent in non-U.S. equities under normal conditions, but have greater flexibility with respect to regional and sector allocations than the Global Core Portfolio.

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