Morgan Stanley Stock: Is Wall Street Bullish or Bearish?

The New York-based financial holding giant, Morgan Stanley (MS), offers a wide array of financial services to governments, institutions, and individuals. With a market capitalization of roughly $225.3 billion, the company’s services include capital raising, financial advisory, equity, fixed income products, alternatives, solutions, and liquidity overlay services.

Over the past year, MS stock has shown healthy performance, boasting a 52% gain, outpacing the broader S&P 500 Index ($SPX), which rose by 21.1% during the same period. In 2025, MS stock has surged by 12.4%, sailing past the broader Index’s 7.9% increase during the same stretch.

Narrowing the focus, MS has also outperformed the Financial Select Sector SPDR Fund’s (XLF) 25.2% return over the past year and 7.5% gain year-to-date (YTD).

Morgan Stanley reported its Q2 2025 earnings on July 16, delivering a mixed yet resilient performance. Net revenues came in at $16.8 billion, up 11.8% year-over-year and ahead of Wall Street’s forecast of $15.9 billion, though the figure reflected a 5% decline from the prior quarter. Earnings per share of $2.13 also managed to top estimates of $1.93, despite an 18% sequential drop and represented a solid 17% increase from the year-ago period.

The strong showing was fueled by better-than-expected trading revenues, bolstered by heightened market volatility tied to tariff developments. Still, investor reaction to the investment bank’s second-quarter earnings remained muted, suggesting a degree of caution despite the upbeat headline numbers.

For the fiscal year 2025, ending in December, analysts anticipate MS to achieve EPS growth of 10.4%, reaching $8.78 on a diluted basis. Notably, Morgan Stanley has consistently beaten consensus estimates over the past four quarters.

Among 24 analysts covering MS stock, the consensus rating is a “Moderate Buy,” comprising six “Strong Buy” ratings, three “Moderate Buys,” and 15 “Holds.”

The current analyst sentiment is slightly more bullish than three months ago, when MS had a total of five “Strong Buy” ratings.

The mean price target of $145.31 represents a 2.8% premium to MS’ current price levels. Meanwhile, the Street-high price target of $160 suggests a potential upside of 13.2%.

On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com