Morgan Stanley: Financial Winner
By Philip van Doorn - 07/16/12 - 4:39 PM EDTTheStreet) -- Morgan Stanley
The shares trade for just over half their reported June 30 tangible book value of $51.81, and for less than six times the consensus 2013 earnings estimate of $4.54. The consensus 2012 EPS estimate is $3.91. Nomura analyst Glenn Schorr rates Citigroup a "Buy," with a $41 price target, and said after the earnings announcement that the results were "not bad considering the environment," as core revenues at main subsidiary Citicorp "hung in," while "expenses were in check," Capital Markets were "OK," and "core loans and deposits grew (Citicorp loans +10% y/y)." Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.
The shares for just over half of their reported March 31 tangible book value of $27.37, and for less than seven times the consensus 2013 earnings estimate of $2.11 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $1.22. Morgan Stanley will report its second-quarter results on Thursday, with analysts expecting a 44-cent profit, compared to a six-cent loss during the first quarter, and a 38-cent loss during the second quarter of 2011. The first-quarter results included a negative impact of $2 billion from debit valuation adjustments as the company's credit spreads tightened. The company reported first-quarter operating earnings -- excluding DVA -- of $1.4 billion, or 71 cents a share. The second-quarter 2011 results included a "negative adjustment of $1.7 billion, or $1.02 a share, related to the conversion of Morgan Stanley's preferred stock in Mitsubishi UFJ Financial Group." Oppenheimer analyst Chris Kotowski rates Morgan Stanley "Outperform," with a $28 price target. The analyst on June 24 lowered his second-quarter earnings estimate for Morgan Stanley to 23 cents from 60 cents, saying his firm had "taken our investment banking fee revenue assumption down from $1.3B to $1.0B," while also cutting "our principal transactions revenue from $3.4B to $2.6B." Kotowski added that "our comp ratio assumption is raised given that the total dollars of compensation seems to hit a floor around $3.7B." The analyst estimates that Morgan Stanley will earn $1.23 a share for all of 2012, followed by 2013 EPS of $2.51. Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.
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