Morgan Stanley(MS) ZACKS·2025-01-27 14:10Core Viewpoint - Morgan Stanley's shares have increased over 5.5% following the release of its Q4 and full-year 2024 results, reaching an all-time high of 1.79 billion, with equity underwriting fees increasing by 102.2% and advisory fees surging 47.1% [3]. - Trading revenues also saw significant growth, with equity trading revenues up 51% to 2 billion [4]. Group 2: Future Outlook - The company is optimistic about its IB business in 2024, citing a healthy M&A pipeline, which is reportedly the highest in seven years [4][7]. - The new administration under President Trump is expected to adopt a more lenient approach to deal-making, which could benefit Morgan Stanley's operations [6][7]. Group 3: Strategic Initiatives - Morgan Stanley has reduced its reliance on capital markets by expanding its wealth and asset management operations, with these segments contributing over 55% to net revenues in 2024, up from 26% in 2010 [9][10]. - The Investment Management division recorded 1.6 trillion, a 14% increase year-over-year [11]. Group 4: Valuation and Analyst Sentiment - Morgan Stanley's stock is currently trading at a forward P/E of 16.07, above the industry average of 14.40, indicating a stretched valuation [16]. - Despite the premium valuation, analysts have raised their earnings estimates for 2025 and 2026, reflecting positive sentiment and expected growth of 13.3% in the long term [19][22].