Capital Markets Day Takeaways: Business Momentum Supports More Morgan Stans

Research evidence excerpt

Capital Markets Day Takeaways: Business Momentum Supports More Morgan Stans

Brokers, Asset Managers & Exchanges

Banks/Large-Cap - Market Weight

MORGAN STANLEY (MS) May 17, 2026

Capital Markets Day Takeaways: Business Momentum Rating:

Supports More Morgan Stans Outperform

Price:

$192.51

The Wolfe Byte Price Target:

We hosted a meeting with MS Co-Head of Equities and FICC trading. MS has done $222

% Upside:well growing and taking share in trading, and takeaways from our meeting suggest 15.3%

this should continue. Maintain Outperform rating, Top Pick status.

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Capital Markets Day Highlights MS' Growth in ISG: We recently hosted a meeting Company Information

with Alan Thomas, Co-Head of Equities at MS, and Jay Hallik, Co-Head of Fixed 52-Week Range $125 - $195

Income, as part of our 2026 Capital Markets Day. While investors tend to focus on Market Cap. (MM) $303,643

the story within Wealth, our meeting highlighted progress MS has made in ISG, with Avg. Value Traded (MM) $932.05 Price to Earnings 12x

share gains across both FICC and Equities, idiosyncratic funding tailwinds, and higher ROTE 0.2%

incremental margins supporting best-in-class EPS growth. With shares trading at Price/ Tangible Value 3.9x

Total Net Payout 1%

~14x our 2027E EPS (vs. target of 15.5x), MS still screens as very attractive; we Dividend Yield 2.1%

would also expect shares to continue to perform well as ests. are revised higher SI% of Float 1.2%

(>90% correlation between EPS revisions and share performance), supporting our Tangible BV/sh $51.58

Outperform rating and Top Pick status.

Industry Trading Fee Pools Should Continue to Grow. While market participants 200190

expected trading fee pools to normalize post-Covid, Thomas and Hallik noted that 180