Morgan Stanley stock price target raised to $177 from $165 at Wells Fargo

Morgan Stanley (MS) reported robust third-quarter 2025 earnings, with EPS of $2.80 significantly exceeding analyst expectations of $2.09 and record revenues of $18.2 billion surpassing forecasts by 9.36%. This strong performance was attributed to outperformance in capital markets, investment banking, trading activities, and wealth management, prompting several analysts to raise their price targets; Wells Fargo increased its target to $177, Jefferies to $186, and Evercore ISI to $175, signaling increased confidence in the company's financial trajectory.

Analysis

Morgan Stanley (MS) reported a robust third quarter for 2025, significantly surpassing analyst expectations with an EPS of $2.80, a $0.70 beat against the anticipated $2.09. The firm also achieved record revenues of $18.2 billion, exceeding forecasts by 9.36%. This strong top and bottom-line performance underscores effective operational execution.

The outperformance was primarily driven by strong results in capital markets, investment banking, and trading activities. Furthermore, the Global Wealth Management division demonstrated solid growth, with net interest income increasing 4% sequentially and surpassing management's guidance, aided by inflows from IPOs. The company's consistent dividend increases for 11 consecutive years also highlight its commitment to shareholder returns.

Following these results, multiple analysts revised their outlooks and price targets upwards. Wells Fargo raised its price target to $177 and increased 2026 and 2027 EPS estimates, while Jefferies and Evercore ISI also boosted their targets to $186 and $175, respectively, maintaining positive ratings. This collective upward revision reflects increased confidence in Morgan Stanley's future earnings trajectory and strategic direction, especially within a market where "Goliath is Winning" among financial institutions.

Key Decisions for Investors

• Given the significant Q3 2025 earnings beat, record revenues, and upward revisions by multiple analysts, investors should consider maintaining or initiating exposure to Morgan Stanley, reflecting its strong operational momentum.
• Monitor the continued strength of the Global Wealth Management division and capital markets performance, as these segments were key drivers of the recent outperformance and indicate strategic success.
• Evaluate the stock's current valuation relative to the newly raised price targets and revised EPS estimates, particularly considering its recent 53% return over six months and proximity to its 52-week high.
• For income-focused portfolios, assess the sustainability of Morgan Stanley's 11-year dividend growth streak and its 2.46% yield, supported by robust earnings.