JP Morgan Analyst Sees Earnings Upside For Morgan Stanley Post-Q4 Beat: Details

JP Morgan analyst Kian Abouhossein shared views on Morgan Stanley‘s MS fourth-quarter results reported today.

The bank reported an adjusted EPS of $2.22, up from $0.85 a year ago and beating the consensus of $1.70. Revenue of $16.22 billion, up 26% year over year, beat the consensus of $15.03 billion.

The analyst writes that Morgan Stanley’s Investment Banking performance is strong, with Equity S&T rising 51% year-over-year (JPM estimate +18%) to $3.3 billion, outperforming the U.S. peers.

The analyst also adds that FICC performed well, growing 35% year over year (JPM estimates +19%) versus an average of 25% among its U.S. peers.

With a Neutral rating on the stock, the analyst expects Morgan Stanley’s shares to outperform peers today.

Abouhossein expects mid-to-high single-digit % EPS upgrades to 2025 consensus but this would be partly dependent on earnings conference call.

During the conference call, the analyst anticipates questions regarding Wealth Management NII, the outlook for IB fee growth following optimistic comments from peers.

Also, the analyst expects the bank to provide outlook for share buybacks, which were in line with JP Morgan estimates expectations at $0.75 billion for the fourth quarter.

Investors can gain exposure to the stock via iShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and Invesco KBW Bank ETF KBWB.

Price Action: MS shares are up 2.57% at $133.90 at the last check Thursday.

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