With IPO Window Open, We're Raising Our Price Target for This Holding
Here's why we're also downgrading this position as well as another.
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With increasing signs that investment banking activity is picking up, we are lifting our price target on Morgan Stanley MS to $145 from $140. By investment banking activity, we mean M&A activity and also the IPO market, the window for which we can say is open.
The latest indication of IPOs heating up are ones for Voyager Technologies (VOYG) Wednesday and Chime Financial (CHYM) today. Both transactions were priced above their target range, and have moved higher from that level, joining the ranks of CoreWeave CRWV, Omada Health (OMDA), Circle Financial (CRCL), Hinge Health (HNGE), MNTN (MNTN), and eToro Group (ETOR).
As more stocks come to market, we’ll continue to evaluate our MS price target as well as for Bank of America BAC. Continued M&A activity would be another reason for us to revisit both of those targets, but with around 10% upside to our respective price targets of $145 and $50 for MS and BAC, we are downgrading our ratings on both to Two from One.
When we revisit those price targets, subject to where the shares are trading, we’ll do the same for our new ratings. Barring any new price target revisions, we see the $120-$124 range as a nice pickup level for MS shares, and near $41 for BAC shares.
At the time of publication, TheStreet Pro Portfolio was long MS and BAC.
