Morgan Stanley's Bold Reinvention Drives 125% Share Surge in Five Years
Morgan Stanley has reshaped itself into a high-return, capital-light td bank over the past five years. The firm now focuses heavily on investment banking and asset and wealth management, two areas that drive most of its business. Its shares have surged by 125% in that time, reflecting strong performance and strategic shifts.
The us bank's transformation began with a push into asset and wealth management during the pandemic. Acquisitions played a key role in this expansion, including the takeover of Eaton Vance in 2020. By August 2023, Eaton Vance's funds were rebranded under Morgan Stanley, such as the renamed Morgan Stanley Investment Funds Global Macro Fund.
Morgan Stanley's core operations now centre on two divisions: institutional securities and asset and wealth management. The firm aims for a steady 20% return on tangible common equity (ROTCE), a target that highlights its focus on efficiency and profitability. Currently, its shares trade at nearly three times tangible book value (TBV), a level considered fair by market analysts.
The ally's strategic shift has positioned it as a leader in investment banking and wealth management. With a 125% gain over five years and a clear focus on high returns, its model appears to be working. The integration of acquisitions like Eaton Vance further strengthens its market presence in these key areas.
