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Major Bank Ratings | Citi: Raises Morgan Stanley's Profit Forecast for the Next Three Years, Rating "Neutral"

Major Bank Ratings | Citi: Raises Morgan Stanley's Profit Forecast for the Next Three Years, Rating "Neutral"

格隆汇格隆汇2026/01/16 08:19
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By:格隆汇
Glonghui News, January 16 | According to a research report by Citi, Morgan Stanley rose about 5.8% on Thursday, significantly outperforming the market, reflecting slightly better-than-expected compensation expenses and banking fee income. Considering the strong growth in the wealth management business, Citi believes that during the economic cycle, Morgan Stanley’s wealth management business can sustainably achieve a pre-tax profit margin of 33%, an efficiency ratio of 68%, and a return on tangible common equity (ROTCE) exceeding 22%. However, these have already been fully priced in at the current price. Citi raised its earnings per share forecast for Morgan Stanley this year by $0.55 to $11.55, next year’s forecast by $0.65 to $11.9, and the 2028 forecast by $0.9 to $12.85. The bank rates it as “Neutral” with a target price of $170.
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