-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
MS posted outstanding Q1 2026 results with EPS of $3.43, beating consensus of $3.01, up 14% Y/Y, while total revenue was $20.6B, up 16% Y/Y, leading to pretax income of $7.0B. Two of its three main segments contributed to growth, with strong regional performance led by Asia up 43% Y/Y and North America up 11% Y/Y. We remain bullish on MS as it stands to significantly benefit from a potential upturn in investment banking as a market leader, with rebound in global markets for trading and capital raising expected to benefit the firm. Management did not provide specific numerical guidance for future periods. AUM grew to $1.9T, up 13% Y/Y, with Alternatives and Solutions reaching $770B, up 184% Y/Y. Consolidated loans rose 17% Y/Y to $515B, with no high credit risks evident. We believe MS can deliver durable revenue and earnings growth that supports a higher valuation multiple, though risks remain from the Iran-U.S. conflict potentially slowing economies. MS returned $1.75B to shareholders via share repurchases.