
NYSE:MS
CEO thinks economy will see a nice recovery in back half of this year. Great job building out asset and wealth management, and so ROE has continued to increase from 10% to 16% in a decade. Buying back stock. Good entry point with the banking turmoil. Cyclical low in banking will come back in 2024-25. Yield is 3.47%.
(Analysts’ price target is $98.05)Reported this morning and shares sank like a rock. Loan losses came in much higher than expected and the investment banking line was disappointing. But only net new assets matter, because MS is in the asset management business; it took in $110 billion which doubled the previous quarter. This number told him that MS was golden. MS shares rallied from that early low to finish slightly positive.
Capital market activity may return next year (IPOs) to benefit GS. Last quarter, their revenues have been down 8%. He prefers Morgan Stanley for being a pure play, even though financials are not a great place being late-cycle.