Outlooks: Market and Economic Forecasts | Morgan Stanley (2024)

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Outlooks: Market and Economic Forecasts | Morgan Stanley? ›

Earnings Recession in 2023 to Transition to Strong Recovery in 2024. Morgan Stanley Research strategists think U.S. corporate earnings could decline 16% in 2023 but stage a comeback in 2024 and 2025.

Morgan Stanley economists anticipate U.S. growth of 2.6% in 2024 and 2.1% in 2025, compared with 2.5% in 2023. Year-over-year growth is likely to moderate toward the end of 2024 with fourth-quarter GDP growth of 2.1%, compared with 3.1% in the fourth quarter of 2023. “Despite our view for growth above 2% for the U.S.

MSCI World Index earnings are expected to rise close to 10% in 2024 and by 11%+ in 2025. This looks demanding given expected 2024 nominal GDP growth in developed markets of 3%-4%, and seems to imply that margins will have to rise further from levels that are already close to peak.

Morgan Stanley expects global GDP growth to stay steady at 3.1% in 2024 and 2025. See what this could mean for your portfolio. Will Mortgage Rates Go Down? Mortgage rates are forecast to drop slightly in 2024 and 2025, but affordability likely won't return to pre- pandemic levels.

Foreign exchange analysts at Morgan Stanley remain bearish on the short-term Sterling outlook and forecasts a Pound to Dollar (GBP/USD) exchange rate slide to 1.1500 at the end... 2022-2023 exchange rate forecasts from investment bank Morgan Stanley - update May 2022.

The Global Economy in a Sticky Spot

Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025. Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization.

The Morgan Stanley stock prediction for 2025 is currently $ 106.92, assuming that Morgan Stanley shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 12.85% increase in the MS stock price.

Analysts' consensus EPS estimate is $1.69 on revenue of $14.4 billion, according to FactSet. Overall, Morgan Stanley is resoundingly stable. During last quarter's conference call, Pick cited geopolitical concerns and a weakening U.S. economy as Morgan Stanley's two biggest risks.

When the year began, many analysts saw stock gains slowing from 2023's strong pace, with the consensus seeing the S&P 500 gaining only 8% to 9% for all of 2024. Meanwhile, the IBD Mutual Fund Index has risen nearly 13%.

The Dow Jones is forecasted to trade in the 40,000-50,000 range during 2025 and continue the sideways movements in the next years.

Is Morgan Stanley a good buy now? ›

Morgan Stanley stock has received a consensus rating of buy. The average rating score is and is based on 52 buy ratings, 26 hold ratings, and 4 sell ratings.

Key takeaways. Global core inflation is expected to remain at close to 3% in 2024, limiting the scope for policy easing. In U.S. equities, momentum crowding and stock market concentration are now at multi-decade extremes.

Total debt on the balance sheet as of March 2024 : $286.47 B.

In late May, he lifted his base-case 12-month forecast for the S&P500, an estimate of what the fair value of the index will be in a year, to 5,400 points.

Morgan Stanley analysts now expect OPEC and non-OPEC supply growth in the region of 2.5 million bpd in 2025. That will likely result in a surplus as the figure is well above demand growth forecasts for next year offered by the IEA, OPEC and several Wall Street banks.

Stock Price Forecast

The 17 analysts with 12-month price forecasts for Morgan Stanley stock have an average target of 101.48, with a low estimate of 79.15 and a high estimate of 121. The average target predicts an increase of 7.14% from the current stock price of 94.72.

Valuation metrics show that Morgan Stanley may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of MS, demonstrate its potential to perform inline with the market. It currently has a Growth Score of D.

The bank Morgan Stanley was reported to have lost over 80% of its market value between 2007 and 2008 during the financial crisis. On September 17, 2008, the British evening-news analysis program Newsnight reported that Morgan Stanley was facing difficulties after a 42% slide in its share price in two days.

As a financial institution, Morgan Stanley is a prime target for cybersecurity threats. Cyberattacks, data breaches, and other security incidents can compromise sensitive client information, disrupt operations, and damage the firm's reputation.