Morgan Stanley: Post-call thoughts: Momentum still building

Research evidence excerpt

Morgan Stanley: Post-call thoughts: Momentum still building

Global Research

16 July 2026ab

Morgan Stanley Equities

United StatesPost-call thoughts: Momentum still building

Diversified Financial

12-month rating Buy

MS: Strength to continue to pull through

The "flow of funds" with regards to what happens to private company employee shares 12m price target US$255.00

after an IPO was a topic on yesterday's call and in investor conversations. After clarifying

further with the company, we think Figure 1 is a handy graphic to help investors

Price (16 Jul 2026) US$220.32

understand how an IPO feeds through the company's wealth engine, provided that MS

is the workplace provider. A few final notes on Wealth as investors refine their forecasts: RIC: MS.N BBG: MS US

first, we would be remiss if we didn't point out that ex-IPO activity, MS NNA of ~$74bn is

Trading data and key metrics

a strong "BAU" quarter, and that this is higher than $59bn in 2Q25 -- which the

52-wk range US$228.55-139.09

company has noted previously outperformed then-seasonal patterns (mostly related to

tax payments). Further, we think ~53% is a good place to forecast advisor comp here on Market cap. US$349b

out. Shares o/s 1,583m (COM)

Free float 92%

Avg. daily volume ('000) 1,889

On the Institutional Securities side, we got a sense from our catch-up call that the

pipeline is indicating "more room to go" on the IB side, though as always we would Avg. daily value (m) US$390.8

mind a slow August from an activity standpoint when refining 3Q expectations. MS Common s/h equity (12/26E) US$108b

noted that the M&A and ECM pipelines are strong, and that the company has already P/BV (12/26E) 3.3x

seen a lot of strength in DCM. However, as M&A picks up, DCM can continue to see Tier 1 ratio 17%

similar strength.