Breakingviews - A Chinese Morgan Stanley is worth an M&A shot
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2025
0mins
Source: Reuters
Potential Merger: China International Capital Corp (CICC) is reportedly planning to merge with China Galaxy Securities, which would create the third-largest brokerage in China with $190 billion in assets, aiming to enhance competitiveness in the financial sector.
Market Dynamics: The merger reflects a shift in market fortunes, as CICC's earnings have declined while China Galaxy's are expected to rise, aligning with China's goal of developing leading investment banks and securities firms by 2035.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MS
Wall Street analysts forecast MS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MS is 185.00 USD with a low forecast of 132.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 179.960
Low
132.00
Averages
185.00
High
219.00
Current: 179.960
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Japan's Prime Minister Victory Fuels Stock Market Surge
- Election Impact: Japan's Prime Minister Sanae Takaichi's landslide election victory has led to expectations that her economic policies will boost the stock market and weaken the yen, favoring looser monetary policy and increased government spending.
- Strong Market Performance: Following the election, Japanese stocks hit record highs, with gains extending into the following days, reflecting investor optimism about the ruling party's victory and confidence in future economic growth.
- Tech Stock Rebound: The U.S. markets also benefited, with Oracle shares rising 9.6% and Microsoft up 3.1%, contributing to a 0.47% increase in the S&P 500 and a 0.9% rise in the Nasdaq Composite, indicating a robust recovery in tech stocks.
- Alphabet's Financing Plan: Despite warnings of potential excess capacity in data centers, Alphabet plans to raise $20 billion through a bond sale, including a 100-year bond, demonstrating the company's confidence in long-term investments.
See More
S&P Lowers China Property Sales Forecast
- Property Sales Forecast Cut: S&P Global Ratings has lowered its forecast for China's property sales in 2026 to a decline of 10% to 14%, worse than the previous estimate of 5% to 8%, indicating persistent market weakness that could increase financial pressure on related companies.
- Fuel Shortage for Airlines: Cuba has announced that international airlines can no longer refuel on the island due to fuel shortages, which may impact tourism and international flight operations, exacerbating the economic challenges faced by the country.
- Novo Nordisk Lawsuit: Novo Nordisk has sued Hims & Hers for mass marketing unapproved copies of its Wegovy obesity drug in the U.S., leading to a 16% drop in Hims & Hers shares on Monday, highlighting the pharmaceutical industry's focus on intellectual property and intense market competition.
- U.S. Market Performance: The S&P 500 rose 0.47% on Monday, marking back-to-back gains, with other major U.S. indexes also climbing, reflecting improved market sentiment despite ongoing concerns regarding capital expenditures and financing among Big Tech companies.
See More
Cipher Mining Stock Surges 13.75% on Bullish Analyst Note
- Analyst Optimism: Morgan Stanley analyst Stephen Byrd initiated coverage on Cipher Mining with an 'overweight' rating, leading to a nearly 14% stock price increase during the trading session, reflecting market optimism about its future performance.
- Bitcoin Mining Trend: Analysts noted a growing trend of Bitcoin miners transitioning into the data center segment, which, if managed effectively, could provide long-term stable cash flows, reducing reliance on volatile cryptocurrencies.
- AI Infrastructure Demand: The Morgan Stanley team believes that strong demand for AI-capable infrastructure is likely to exceed limited supply, presenting significant potential for companies like Cipher Mining and TeraWulf, despite their relatively small data center operations.
- Future Outlook: While Cipher Mining has yet to fully establish itself as a data center specialist, analysts maintain a positive outlook, suggesting it could achieve substantial gains in the rapidly evolving AI market.
See More
Microsoft Stock Rebounds Amid Optimism for AI Investments
- Market Recovery: After a tough week, Microsoft saw its stock rise over 3%, significantly outperforming the S&P 500's 0.5% increase, indicating a rebound in investor confidence towards software stocks.
- Investment Bank Analysis: Morgan Stanley's analyst highlighted that the market is underestimating the potential of veteran developers like Microsoft in the AI space, suggesting that fears regarding their competitiveness in AI are overblown, presenting a buying opportunity for investors.
- OpenAI Growth Resurgence: CNBC reported that OpenAI has returned to over 10% monthly growth in both user count and overall usage, with Microsoft’s 27% stake in the company further solidifying its strategic position in the AI sector.
- Future Outlook on AI: Although the sell-off in Microsoft may have been excessive, its ongoing investment in AI is viewed as crucial for future competitiveness, positioning Microsoft to leverage innovation and technological advantages for long-term growth.
See More
Two Bitcoin Miners Set to Benefit from the AI Boom
Bitcoin Price Decline: Bitcoin prices have decreased by 44% since October, indicating a significant downturn in the cryptocurrency market.
Bitcoin Miners Transition: Bitcoin miners are adapting by shifting their operations to support AI data centers, which has provided them with new opportunities.
Stock Performance: Several Bitcoin miner stocks have seen an increase in value over the past two years due to this transition.
Future Projections: Morgan Stanley analyst Stephen Byrd predicts that at least two Bitcoin miner stocks could potentially double in value within the next year.
See More
Morgan Stanley Sees Opportunity in Microsoft and Salesforce Amid AI Concerns
- Market Recovery Signs: Following last week's selloff in enterprise software stocks, Microsoft and Salesforce saw consecutive gains on Monday, indicating a potential recovery in market sentiment as investors look for attractive buying opportunities.
- Price Decline Analysis: Microsoft shares have dropped 17% over the past three months, while Salesforce has declined nearly 20%, reflecting investor concerns about the impact of AI advancements potentially enabling businesses to develop software independently.
- Profit Model Transition: Morgan Stanley believes that while AI may enhance productivity and affect seat license demand, it does not pose an existential risk but rather an execution risk related to business model transitions, emphasizing the strong positioning of Microsoft and Salesforce in IT spending plans.
- Divergent Investment Ratings: While Morgan Stanley maintains a bullish outlook on Microsoft with a “buy” rating, it takes a more cautious stance on Salesforce, suggesting it should not be bought at this time, reflecting uncertainty regarding future profitability.
See More
Japan's Prime Minister Victory Fuels Stock Market Surge
- Election Impact: Japan's Prime Minister Sanae Takaichi's landslide election victory has led to expectations that her economic policies will boost the stock market and weaken the yen, favoring looser monetary policy and increased government spending.
- Strong Market Performance: Following the election, Japanese stocks hit record highs, with gains extending into the following days, reflecting investor optimism about the ruling party's victory and confidence in future economic growth.
- Tech Stock Rebound: The U.S. markets also benefited, with Oracle shares rising 9.6% and Microsoft up 3.1%, contributing to a 0.47% increase in the S&P 500 and a 0.9% rise in the Nasdaq Composite, indicating a robust recovery in tech stocks.
- Alphabet's Financing Plan: Despite warnings of potential excess capacity in data centers, Alphabet plans to raise $20 billion through a bond sale, including a 100-year bond, demonstrating the company's confidence in long-term investments.
See More
S&P Lowers China Property Sales Forecast
- Property Sales Forecast Cut: S&P Global Ratings has lowered its forecast for China's property sales in 2026 to a decline of 10% to 14%, worse than the previous estimate of 5% to 8%, indicating persistent market weakness that could increase financial pressure on related companies.
- Fuel Shortage for Airlines: Cuba has announced that international airlines can no longer refuel on the island due to fuel shortages, which may impact tourism and international flight operations, exacerbating the economic challenges faced by the country.
- Novo Nordisk Lawsuit: Novo Nordisk has sued Hims & Hers for mass marketing unapproved copies of its Wegovy obesity drug in the U.S., leading to a 16% drop in Hims & Hers shares on Monday, highlighting the pharmaceutical industry's focus on intellectual property and intense market competition.
- U.S. Market Performance: The S&P 500 rose 0.47% on Monday, marking back-to-back gains, with other major U.S. indexes also climbing, reflecting improved market sentiment despite ongoing concerns regarding capital expenditures and financing among Big Tech companies.
See More
Cipher Mining Stock Surges 13.75% on Bullish Analyst Note
- Analyst Optimism: Morgan Stanley analyst Stephen Byrd initiated coverage on Cipher Mining with an 'overweight' rating, leading to a nearly 14% stock price increase during the trading session, reflecting market optimism about its future performance.
- Bitcoin Mining Trend: Analysts noted a growing trend of Bitcoin miners transitioning into the data center segment, which, if managed effectively, could provide long-term stable cash flows, reducing reliance on volatile cryptocurrencies.
- AI Infrastructure Demand: The Morgan Stanley team believes that strong demand for AI-capable infrastructure is likely to exceed limited supply, presenting significant potential for companies like Cipher Mining and TeraWulf, despite their relatively small data center operations.
- Future Outlook: While Cipher Mining has yet to fully establish itself as a data center specialist, analysts maintain a positive outlook, suggesting it could achieve substantial gains in the rapidly evolving AI market.
See More
Microsoft Stock Rebounds Amid Optimism for AI Investments
- Market Recovery: After a tough week, Microsoft saw its stock rise over 3%, significantly outperforming the S&P 500's 0.5% increase, indicating a rebound in investor confidence towards software stocks.
- Investment Bank Analysis: Morgan Stanley's analyst highlighted that the market is underestimating the potential of veteran developers like Microsoft in the AI space, suggesting that fears regarding their competitiveness in AI are overblown, presenting a buying opportunity for investors.
- OpenAI Growth Resurgence: CNBC reported that OpenAI has returned to over 10% monthly growth in both user count and overall usage, with Microsoft’s 27% stake in the company further solidifying its strategic position in the AI sector.
- Future Outlook on AI: Although the sell-off in Microsoft may have been excessive, its ongoing investment in AI is viewed as crucial for future competitiveness, positioning Microsoft to leverage innovation and technological advantages for long-term growth.
See More
Two Bitcoin Miners Set to Benefit from the AI Boom
Bitcoin Price Decline: Bitcoin prices have decreased by 44% since October, indicating a significant downturn in the cryptocurrency market.
Bitcoin Miners Transition: Bitcoin miners are adapting by shifting their operations to support AI data centers, which has provided them with new opportunities.
Stock Performance: Several Bitcoin miner stocks have seen an increase in value over the past two years due to this transition.
Future Projections: Morgan Stanley analyst Stephen Byrd predicts that at least two Bitcoin miner stocks could potentially double in value within the next year.
See More
Morgan Stanley Sees Opportunity in Microsoft and Salesforce Amid AI Concerns
- Market Recovery Signs: Following last week's selloff in enterprise software stocks, Microsoft and Salesforce saw consecutive gains on Monday, indicating a potential recovery in market sentiment as investors look for attractive buying opportunities.
- Price Decline Analysis: Microsoft shares have dropped 17% over the past three months, while Salesforce has declined nearly 20%, reflecting investor concerns about the impact of AI advancements potentially enabling businesses to develop software independently.
- Profit Model Transition: Morgan Stanley believes that while AI may enhance productivity and affect seat license demand, it does not pose an existential risk but rather an execution risk related to business model transitions, emphasizing the strong positioning of Microsoft and Salesforce in IT spending plans.
- Divergent Investment Ratings: While Morgan Stanley maintains a bullish outlook on Microsoft with a “buy” rating, it takes a more cautious stance on Salesforce, suggesting it should not be bought at this time, reflecting uncertainty regarding future profitability.
See More
