Market Overview

Nomura Initiates Coverage on Morgan Stanley at Neutral

Share:
Related MS
Fast Money Picks For August 4
Market Update: Thursday's Mid-Day Market Movers: GM Tops Projections, Morgan Stanley On Oil; SanDisk, Inotek, Flotek, Del Frisco's And More
Goldman Sachs Has $5.9 Bil Worth Of Disdain For Legal Fees (Investor's Business Daily)

In a report published Thursday, Nomura analyst Steven Chubak initiated coverage on Morgan Stanley (NYSE: MS) at Neutral, with a $34.00 price target.

According to the report, Nomura is constructive on the long-term earnings outlook, as MS should exceed margin guidance in wealth management and appears on track to achieve $1.6bn of targeted savings.

“MS is the most negatively impacted by the recently-proposed leverage rules, and its weaker position suggests capital return will likely be constrained,” the report noted.

Some highlights from the report included:

-”Normal ROE potential of ~13% and a 2014E capital deficit of $7bn support our $34 TP.” -”Under a risk-based regime, MS would be valued at north of $40 using our capital-adjusted approach.” -FY13E EPS at $1.8. -FY14E EPS at $2.39.

MS closed Wednesday at $31.49.

Latest Ratings for MS

DateFirmActionFromTo
Jul 2015Guggenheim SecuritiesDowngradesBuyNeutral
Jul 2015MacquarieMaintainsNeutral
Jul 2015CitigroupMaintainsNeutral

View More Analyst Ratings for MS
View the Latest Analyst Ratings

Posted-In: Nomura Steven ChubakAnalyst Color Initiation Analyst Ratings

 

Related Articles (MS)

Get Benzinga's Newsletters