Morgan Stanley (NYSE:MS) upgraded to a Hold rating at Wolfe Research after analyst Steven Chubak said the stock has a better risk-reward profile considering its present trading position. The upgrade comes on the heels of a market selloff, which Chubak said makes the stock “much more balanced.”
In a note to investors, Chubak said the recent selloffs made the shares “fairly valued, with earnings risk better reflected in consensus.” The sell-side analyst noted that MS is now selling at about 10.6 times his combined 2024–2025 EPS projections.
According to Chubak, Morgan Stanley has been the poorest performer since earnings began. In response to earnings this season, the stock fell 6.8% on Wednesday, the most among large-bank rivals. The decline was its biggest one-day drop since June 2020.
With the upgrade from Wolfe Research, Morgan Stanley has no bearish Wall Street coverage joining big-bank rivals JP Morgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and Goldman Sachs (NYSE:GS) in this regard.
Morgan Stanley shares edged upwards by 0.82% in Friday’s trading. Despite that, the stock will finish the week with a nearly 7% decline. Year-to-date, the stock has lost 11.98% of its value.
Is MS a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MS stock based on nine Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average MS price target of $93.14 per share implies a 26.51% upside potential.
