Morgan Stanley (MS) received a Buy upgrade from UBS with a $196 price target (18% upside from $166.55), as the firm reported full-year 2025 revenues of $70.6B, EPS of $10.21, and $9.3 trillion in total client assets, with Investment Banking revenues surging 47% year-over-year in Q4. UBS also noted Morgan Stanley’s well-capitalized balance sheet with a CET1 ratio of 15%.
UBS upgraded Morgan Stanley amid broad financial sector weakness driven by Iran conflict concerns, private credit worries, and AI disruption fears, betting that the stock’s recent pullback reflects a cyclical rather than structural decline.
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Morgan Stanley (NYSE:MS) stock got a vote of confidence this morning from UBS (NYSE:UBS), which upgraded shares from Neutral to Buy with a price target of $196. With Morgan Stanley shares trading at $166.55 as of April 6, that target implies roughly 18% upside from current levels. UBS analyst Erika Najarian sees the recent pullback as an opportunity rather than a warning sign.
The upgrade arrives as bank stocks face broad selling pressure tied to the Iran conflict, private credit concerns, and AI disruption fears. Morgan Stanley shares are down 6.5% year-to-date, even after a 64% gain over the past year. The VIX currently sits at 23.87, reflecting elevated but not extreme market anxiety.
Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
MS | Morgan Stanley | UBS | Upgrade | Neutral | Buy | $195 | $196 |
Najarian’s thesis centers on Morgan Stanley’s resilience amid market headwinds, its history of embracing new technologies, and its positioning to benefit from banking sector deregulation. She argues the firm has “catalysts ahead to reignite” the shares, pointing specifically to strength in advisory, the potential for blockbuster IPOs this year, and a wealth franchise that “leads peers.” The upgrade is contrarian given the current consensus Hold rating across Wall Street.
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The firm’s most recent results back up that confidence. Morgan Stanley delivered full-year 2025 revenues of $70.6 billion and EPS of $10.21, with a return on tangible common equity of 21.6%. Investment Banking revenues surged 47% year-over-year in Q4 2025, and total client assets reached $9.3 trillion.
