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UBS anticipates challenges that make it harder to exceed Street estimates, and reduce its estimates by 11% for 2024 and 2025.
“Despite its successful transformation into a WM-focused firm with a solid, wirehouse peer leading growth profile, MS is confronted with obstacles such as deposit sorting/yield seeking, intense competition for talent, and a challenging revenue environment,” commented the analysts at UBS.
The firm highlighted the 43% year-over-year decline in WM sweep deposits in Q2/23, with an additional 7% decrease expected through the year-end. Although Morgan Stanley has navigated its strategic transition well, UBS believes its current pricing appears to be fair and is therefore adopting a neutral stance.
