Trust, Relationships & Advice – Three Things AI Won't Replace

Research evidence excerpt

Trust, Relationships & Advice – Three Things AI Won't Replace

Financials | Brokers, Banks & Asset Managers

June 29, 2026

Morgan Stanley Glenn Schorr, CFA Benjamin Rubin, CFA, CPA 212-653-9045 646-551-8502

MS | $212.03 glenn.schorr@evercoreisi.com Benjamin.Rubin@evercoreisi.com

Outperform | Target Price/Base Case: $210.00 John Dunn Sam Wardlow

Company Update 212-446-9455 212-653-9019

John.Dunn@EvercoreISI.com sam.wardlow@evercoreisi.com

Company Statistics

Market Capitalization (B) $316 Trust, Relationships & Advice – Three

52-Week Range $104.78 - $194.59

Price/Earnings 37.0 Things AI Won't Replace

Forward P/E 24.1 We recently met with MS Co-President Andy Saperstein for an

Shares Outstanding (M) 1,651 engaging conversation on how the firm’s consistent investment in its

Dividend/Share 3.48 technology platform, product capabilities, and client-acquisition funnel

Dividend Yield 1.8%

Fiscal Year End Dec puts advisors in the best position to serve clients, win new business and

drive higher profitability. Sure, products can get commoditized over time

and AI will bring both threats & opportunities to the wealth management

business (including the concept of agentic cash), but MS’ wealth

Earnings Summary

franchise has three things AI & technology won’t replace: The Trust,

2025 2026E 2027E Relationships, and Advice its advisors hold with their clients.

Revenue (M) Q1 $17,739 $20,580 $21,776

Q2 $16,792 $18,865 $20,113 MS has built considerable scale in wealth and that’s a huge advantage,

Q3 $18,224 $19,199 $20,510 but the real secret to success is how they’ve integrated every client

Q4 $17,890 $19,147 $20,481 touchpoint across the firm. To that end, MS doesn’t charge for every

FY $70,645 $77,791 $82,880 single service – in fact, MS can often “give away” stock plan