Morgan Stanley (MS) is slated to report Q3 earnings before the market open on Wednesday, October 21 with a conference call scheduled for 11 am ET.
Guidance
Analysts are looking for EPS of 11c on revenue of $6.99B. The consensus range is 11c-56c for EPS, and $5.64B-$8.23B for revenue, according to First Call.
Analyst Views
Deutsche Bank earlier this month initiated Morgan Stanley with a Buy rating and $36 target. The firm believes the company's near-term outlook will be "bumpy." However, it thinks the investment bank's valuation is low, while all three of its business have already hit trough earnings levels. As a result, Deutsche Bank believes the stock has significant upside potential for book value growth and valuation increases. More specifically, Morgan Stanley may benefit from better capital market trends and a better performance from its asset management unit, the firm contends. On the other hand, the investment bank faces risk from its upcoming CEO change, as well as regulation and capital requirements, Deutsche Bank believes.
Separately, FBR Capital earlier this month predicted that Morgan Stanley's EPS would come in at 26c. The firm expects the investment bank to be negatively affected by a $500M debt value adjustment and some loss of market share to medium-sized brokers. Meanwhile, better than expected trading results by Goldman Sachs (GS) and J.P. Morgan (JPM) may be a positive sign for Morgan Stanley's results. The fact that Citigroup's (C) costs for delinquent loans dropped may also be a good sign for Morgan Stanley, which still has a great deal of exposure to legacy loans.
