Morgan Stanley Earnings: Outlook Generally Positive, but Some Growth Drivers Could Fade

Investment banking activity is likely to liven up in 2024, but previous growth drivers at Morgan Stanley may not participate. For 2023, Morgan Stanley reported net income to common shareholders of $8.5 billion, or $5.18 per diluted share, on $54 billion of net revenue. Net revenue increased 1% from the previous year as higher trading revenue offset decreases in net interest income and investment banking. We don’t anticipate making a material change to our $88 fair value estimate for narrow-moat-rated Morgan Stanley and assess the shares as fairly valued.