U.S. investment bank Morgan Stanley (MS) has named CEO Ted Pick its new board chair.
The New York-based firm said that Pick will succeed James Gorman, the current chair of Morgan Stanley’s board of directors, at the end of this year. Gorman, who was Morgan Stanley’s CEO before Pick took over at the start of this year, is departing to head the board of directors at Walt Disney Co. (DIS).
Analysts say that Morgan Stanley is upholding a Wall Street tradition of consolidating the roles of CEO and board chair. However, some investors and shareholder activists have criticized the practice, claiming it concentrates too much power with an individual person.
Accelerating Growth at Morgan Stanley
Ted Pick’s ascension comes at a time of accelerating growth at Morgan Stanley. The investment bank recently reported strong financial results for this year’s third quarter, sending its stock soaring to an all-time high as a result.
The Wall Street firm is benefitting from growth in its wealth management division and stock trading as equity markets hover near record highs. Morgan Stanley is also getting a lift as mergers and acquisitions (M&A) and initial public offerings (IPOs) return after a downturn coming out of the Covid-19 pandemic.
MS stock has gained 31% so far in 2024.
Is MS Stock a Buy?
Morgan Stanley stock has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on six Buy, nine Hold, and one sell recommendations assigned in the last three months. The average MS price target of $120.31 implies 0.96% upside potential from current levels.
