Morgan Stanley: UBS maintains a 'buy' rating.

(CercleFinance.com) - UBS maintains a "buy" rating on Morgan Stanley, with a target price of 50 dollars after the US investment bank's fourth-quarter results beat its estimates.


This morning Morgan Stanley reported a diluted EPS from continuing operations of 0.81 dollar per share, while UBS was expecting just 0.74 dollar per share and the consensus, 0.65 dollar per share.

In a reaction note, the broker says a low tax rate partially enabled Morgan Stanley to offset losses in investment management (IM) and charges in wealth management (WM).

"We believe asset sensitivity, strong wealth management results, and the potential for improving investor risk appetite should drive a higher valuation," UBS writes in the report.

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