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BofA Analyst Maintained Morgan Stanley Buy Rating

Investors are weighing the firm's growth trajectory ahead of its upcoming third-quarter earnings report.

Updated on Sept. 24, 2026 in Stock Picks

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BofA Securities maintained a Buy rating for Morgan Stanley, citing the firm's strong growth trajectory through its specialized equity and wealth management infrastructure. AI Illustration. Upload story photo >

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BofA Securities analyst Ebrahim Poonawala recently reaffirmed a Buy rating and a $250 price target for Morgan Stanley. This outlook comes as the firm maintains a strong competitive position in the financial services sector.

Why it matters

The firm's strategic focus on controlling cap table infrastructure and managing employee equity plans provides a distinct client acquisition pipeline. These elements contribute to projected per-share profit growth that analysts suggest may outperform other large banks.

Morgan Stanley shares closed at $205 on September 22, representing a 13% increase for 2026. This follows second-quarter revenue growth of 28% year-over-year.

The players

Morgan Stanley

A global financial institution providing investment banking, wealth management, and workplace retirement services.

BofA Securities

The investment banking division of Bank of America that provides market analysis and research to institutional and retail investors.

Ebrahim Poonawala

An equity research analyst at BofA Securities who tracks large-cap financial institutions.

E*TRADE

An electronic trading platform owned by Morgan Stanley that offers retail brokerage services and cryptocurrency access.

The details

Morgan Stanley leverages its Morgan Stanley at Work division to secure relationships with private companies, often becoming their preferred platform before an IPO. By integrating tools like the recent EquityZen acquisition and expanded spot crypto trading on E*TRADE, the firm keeps clients within its ecosystem. These infrastructure-heavy operations create sustainable revenue streams that differentiate the bank from competitors.

Timeline

  1. January 27, 2026: EquityZen acquisition closed.

  2. July 2026: Spot crypto trading rollout completed on E*TRADE.

  3. September 18, 2026: Morgan Stanley shares closed at $202.58.

  4. September 20, 2026: BofA analyst issued Buy rating and $250 target.

  5. October 14, 2026: Morgan Stanley third-quarter earnings release.

Money Landscape

The firm's expansion follows a broader industry trend of large banks deepening integration into the private company lifecycle. This move aligns with the standards set by the SEC's Regulation Best Interest regarding how firms manage client relationships.

Investors currently holding the stock may monitor the upcoming earnings report to see if profit growth meets analyst expectations. Before making any changes to your portfolio based on analyst price targets, discuss your long-term financial goals with a qualified financial professional.

The takeaway

Morgan Stanley continues to focus on infrastructure-led growth to capture market share in private and public equities. Keep the October 14, 2026, earnings date on your calendar to track how these service expansions translate into tangible per-share profit growth.

What happens next

Morgan Stanley is expected to release third-quarter results on October 14, 2026.

Further reading

For more information on market analysis, visit the Stock Picks section.

Source note: This article includes information reported by The News&Observer.

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