Published: December 12, 2025 (US markets)
Morgan Stanley stock (NYSE: MS) is trading near its strongest levels of the year as investors weigh a fresh Federal Reserve rate cut, an improving dealmaking backdrop, and Wall Street’s increasingly cautious stance on valuation after a powerful 2025 run.
As of 15:48 UTC on Friday, Dec. 12, Morgan Stanley shares were at $180.51, fractionally higher on the day, after an intraday range of $179.09 to $181.33.
The stock is coming off a session that set a new 52-week high of $181.98 on Thursday, Dec. 11, placing MS in the spotlight as one of the financial sector’s standout momentum names into year-end. [1]
Below is what’s moving Morgan Stanley stock right now, what analysts are forecasting, and what to watch heading into the firm’s next earnings report.
Morgan Stanley stock price today (Dec. 12, 2025)
Morgan Stanley shares are consolidating just below recent peaks:
- Latest price: $180.51
- Day change: +$0.22 (+0.12%)
- Intraday high/low: $181.33 / $179.09
- Most recent trade time: 15:48:30 UTC (Friday, Dec. 12)
Recent trading has pushed MS to a new 52-week high of $181.98 (Dec. 11), with a 52-week low of $94.33 (Apr. 7, 2025)—a massive swing that underscores how sharply sentiment has improved toward capital-markets-driven banks and brokers. [2]
Key takeaway for investors: At roughly $180, Morgan Stanley is trading above many aggregated Wall Street 12‑month target prices (more on that below), a setup that often shifts the debate from “recovery trade” to “how much upside is left?”
The macro catalyst: The Fed just cut rates—again—and the vote was unusually split
A major macro driver this week was the Federal Reserve’s quarter-point rate cut at its Dec. 10 policy decision, taking the benchmark rate to a 3.50%–3.75% range. [3]
What made this cut particularly notable—and relevant for financial stocks like Morgan Stanley—was the level of internal disagreement:
- Three officials dissented, with two preferring no change and one preferring a larger half-point cut. [4]
- Reuters reporting also highlighted that policymakers signaled a more cautious path ahead, with updated projections pointing to fewer cuts in 2026 than markets had been pricing. [5]
For Morgan Stanley investors, the “rates story” matters in two big ways:
- Market activity: Lower rates can support risk appetite, underwriting, M&A financing, and trading volumes.
- Wealth effects: Stronger equity markets typically lift client assets and fee potential across wealth and investment management.
Still, the split decision—and ongoing inflation concerns voiced by dissenters—adds uncertainty about how supportive monetary policy will be in 2026. [6]
Why Morgan Stanley stock is strong: “Dealmaking revival” meets “wealth management machine”
Morgan Stanley’s 2025 narrative has centered on two themes: a rebound in capital markets activity and the resilience of its wealth franchise.
1) Capital markets and investment banking are rebounding
In its third-quarter 2025 results, Reuters reported that Morgan Stanley’s profit beat expectations as a surge in dealmaking helped drive record revenue. Investment banking revenue jumped 44%, and CFO Sharon Yeshaya said the investment banking pipeline was at “all-time highs.” [7]
That quarter also delivered:
- Earnings per share: $2.80 (vs. $2.10 expected, per LSEG estimates cited by Reuters)
- Total quarterly revenue: $18.2 billion (record, per Reuters) [8]
The market’s message was clear: investors were willing to re-rate the stock higher if dealmaking and underwriting continued to normalize after slower periods earlier in the cycle.
2) Wealth management scale remains a long-term pillar
Reuters also noted that Morgan Stanley’s wealth management business reached $8.9 trillion in assets under management, moving closer to the firm’s long-stated $10 trillion target, alongside a 30.3% pre-tax margin in the segment (per Reuters). [9]
That matters for MS stock because wealth management can help smooth earnings volatility when trading or investment banking cools.
Today’s analyst headline (Dec. 12): RBC raises Morgan Stanley price target to $185
The biggest Morgan Stanley-specific analyst move crossing the tape on Dec. 12, 2025: RBC raised its price target on Morgan Stanley to $185 from $171 and kept a Sector Perform rating, according to MT Newswires via MarketScreener. [10]
How to read it:
- A higher price target reflects improved assumptions (often earnings, multiples, or risk outlook).
- But “Sector Perform” (i.e., roughly neutral) signals RBC is not pounding the table on outperformance—especially after the stock’s big run.
In other words, at ~$180, a $185 target implies only modest upside—consistent with a market that has already priced in a lot of good news.
Consensus forecasts: many price targets sit below the current stock price
Across major aggregator snapshots, Wall Street’s average 12‑month price targets for MS cluster in the mid‑$170s, which is below today’s trading level around $180:
- MarketWatch shows an average target price around $174.19 and an “Overweight” average recommendation. [11]
- MarketBeat lists an average target near $173.38, with targets ranging from $144 (low) to $198 (high). [12]
- TipRanks shows an average target around $176.08, also slightly below recent prices. [13]
This doesn’t automatically mean the stock must fall—targets can lag fast-moving markets—but it does mean Morgan Stanley may need fresh catalysts (earnings beats, guidance strength, buybacks, or a faster-than-expected deal wave) to justify another major leg higher.
What analysts expect for earnings (2025 and 2026)
Yahoo Finance’s analyst summary indicates:
- 2025 average EPS estimate: ~9.91
- 2026 average EPS estimate: ~10.55 [14]
If those earnings materialize, the market will focus on whether MS can sustain premium valuation without a pullback in investment banking or trading.
Valuation snapshot
Yahoo Finance lists Morgan Stanley at roughly:
- Trailing P/E: ~18.49
- Forward P/E: ~17.18 [15]
For context, those are not extreme for a high-quality franchise—but they can look demanding if the market begins pricing a slowdown in capital markets momentum.
Strategy outlook: Morgan Stanley’s own market call is bullish into 2026—and that can support MS earnings
Morgan Stanley’s strategists have been publishing a constructive outlook for risk assets heading into 2026, including the view that a more favorable macro/policy environment could benefit U.S. equities. [16]
Reuters also reported in November that Morgan Stanley expects U.S. stocks to outperform global peers and forecast the S&P 500 could reach 7,800 by end‑2026 (about 16% upside from then-current levels, per Reuters). [17]
Why that matters for MS shareholders: rising equity markets typically support
- wealth management fee revenue (assets rise),
- client activity,
- underwriting windows (IPOs),
- and M&A confidence.
Risks and pressure points for Morgan Stanley stock
Even with strong momentum, several risk factors remain front-and-center for 2026:
1) Fed policy uncertainty and inflation credibility concerns
The Fed’s December cut came with multiple dissenters and public warnings about inflation risk and policymaker credibility—an environment that can quickly shift bond yields and equity multiples. [18]
2) Regulatory and legal headlines still appear
Reuters reported that Dutch prosecutors imposed fines totaling 101 million euros on two Morgan Stanley entities over dividend tax evasion tied to historical filings. While the matter was described as “historical,” regulatory headlines can still weigh on sentiment at the margin. [19]
3) Competition in investment banking is heating up
Reuters reporting on rivals expanding their investment banking ambitions—such as Wells Fargo’s hiring push—signals the fee pool is attractive again, but competition for mandates remains fierce. [20]
Next major catalyst: Morgan Stanley Q4 and full-year 2025 earnings on Jan. 15, 2026
The next major “must-watch” date for Morgan Stanley stock is the firm’s Fourth Quarter and Full-Year 2025 results and conference call, scheduled for:
- Thursday, January 15, 2026 at 8:30 a.m. ET
- With results expected to be released around 7:30 a.m. ET the same day [21]
What investors will likely focus on in the Q4 report
Based on what’s been driving the stock, the market will likely key in on:
- Investment banking fees: Is the “pipeline at all-time highs” translating into realized revenue? [22]
- Equities and prime brokerage strength: Can trading stay strong if volatility falls? [23]
- Wealth management margins and net new assets: Are margins holding above key thresholds? [24]
- Capital return: buybacks/dividends and capital ratios (especially after 2025 regulatory updates referenced in prior reporting). [25]
Bottom line: Morgan Stanley stock is strong—but the next move may depend on earnings, not momentum
On Dec. 12, 2025, Morgan Stanley stock is trading around $180, near fresh highs and backed by a supportive (if increasingly debated) rate-cutting cycle and a capital markets rebound. [26]
But with many consensus price targets sitting below the current share price, the bullish case increasingly rests on Morgan Stanley proving it can extend the earnings upcycle into 2026—especially in investment banking and markets—while keeping its wealth engine compounding. [27]
References
1. markets.ft.com, 2. markets.ft.com, 3. www.federalreserve.gov, 4. www.federalreserve.gov, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.marketscreener.com, 11. www.marketwatch.com, 12. www.marketbeat.com, 13. www.tipranks.com, 14. finance.yahoo.com, 15. finance.yahoo.com, 16. www.morganstanley.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.morganstanley.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.reuters.com, 26. markets.ft.com, 27. www.marketbeat.com
