Morgan Stanley Stock Faces Headwinds, Says Analyst

Oppenheimer cut its price target as well

Deputy Editor
Oct 5, 2022 at 8:59 AM
facebook X logo linkedin

Morgan Stanley (NYSE:MS) stock is down 1.8% to trade at $82.50 before the bell, after Atlantic Equities downgraded the banking giant to "neutral" from "overweight." The analyst also cut its price target to $85 from $95, citing decreased investment banking activity, a pullback in equity markets, trading estimates that they feel "remain too optimistic," and a lack of near-term positive catalysts. In addition, Oppenheimer also cut its price target from $99 to $93.

There's plenty of room for even more brokerages to move in with bear notes as well. Coming into today, eight covering firms still rated Morgan Stanley stock a "strong buy," and the 12-month consensus target price of $94.87 is a 14.8% premium to last night's close. 

The options pits have flashed a penchant for bearish bets in recent weeks. Data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the MS sports a 50-day put/call volume ratio of 1.11, which stands higher than 98% of readings from the past year. This means puts are not only outpacing calls, but they've also been getting picked up at a quicker-than-usual clip.

It's worth noting that Morgan Stanley stock ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 13 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.

On the charts, Morgan Stanley stock's 320-day moving average rejected a mid-August rally just above the $92 level. By mid-September, this tumble sent the shares below the $84 mark and the 60-day trendline, the latter of which capped yesterday's 4.5% gain. As such, MS stands 14.5% lower year-to-date.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI