Morgan Stanley (MS) stock surged 5.07% in intraday trading, outperforming the broader market as investors anticipate strong first-quarter results and positive asset growth trends. The rally comes amid a mixed performance in the banking sector, with some peers experiencing declines.
According to analysts at Bank of America, Morgan Stanley is expected to report robust first-quarter earnings, with revenue projected to rise 10.7% to $16.76 billion and adjusted earnings per share (EPS) to increase 13% to $2.29. The analysts noted, "Equities trading strength and lagged impact on wealth from market weakness (more a Q2 event) should combine for a strong Q1 2025."
Investors are particularly focused on Morgan Stanley's net new asset growth, which has averaged several billion dollars per quarter over the past year. This metric is seen as a key indicator of future acceleration in the company's wealth management business. The positive outlook for Morgan Stanley contrasts with some of its peers in the banking sector, which have faced challenges due to recent market volatility and economic uncertainties.