Stockchase Opinions

Sarat Sethi, Managing Partner, Douglas C. Lane & Assoc. Morgan Stanley MS-N BUY Mar 19, 2025

They announced lay-offs, but no financial advisors. 70% of earnings come from the wealth business. They have a strong balance sheet and pay a 3% dividend yield that's growing. MS is-5% this year. The time to buy.

$119.850

Stock price when the opinion was issued

investment companies funds
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

BUY

An investment-focused name. Bit more leverage, bit more beta. Likes this space, but it's not as conservative as the money-centre banks.

HOLD

They report Wednesday. Bears kept tearing apart their wealth management business, but investors buy on any weakness. Pays a 3.5% dividend. Hold on.

BUY ON WEAKNESS

Investment banks don't get a lot of love because earnings are so cyclical. Investors will put a different multiple on cyclical earnings versus steady earnings. Phenomenal job transitioning to more of a wealth manager; gives a lot more earnings durability. Prefers it to GS. Would not add here, valuation's too rich; wait for pullback.

BUY

They just delivered a strong Q3: +56% investment banking YOY, 22% equity trading YOY with an efficient 72% expense ratio and 17.5% return on common equity, a major beat. The wealth management business is booming with $64 billion of new assets.

PAST TOP PICK
(A Top Pick Sep 15/23, Up 39%)

Excellent company that has owned for ~10 years. Will continue ownership. Very high quality business with strong balance sheet, and ability to generate profits. Management very strong with good capital allocation skills. 

BUY

KCE ETF for capital markets was the only ETF in the US that made a new RSI high last week going into the election. Great job building M&A and trading. Very strong wealth management. Technically, a break out. Could pull back, but he thinks there's a ways to go.

BUY

The question was on his preference of this group of wealth management companies. He owns all three for different reasons. The possible lack of regulation under the new administration has already boosted them. They are in excellent financial shape and have good dividend growth. It is not an expensive sector.

BUY

This week, they delivered a big revenue and earnings beat. Investment banking revenue rose 25% and equity 51%. Strong expense control as seen in their 69% efficiency ratio and bought back $750 million in shares. The sky is the limit for these guys. 

BUY

He's most excited about banking de-regulation, loosening constraints as a result of the 2008 banking crisis. De-regulating will loosen a lot of capital, so he owns MS in anticipation.