Financial services behemoth Morgan Stanley (NYSE:MS) has picked Ted Pick as the new CEO to replace outgoing chief James Gorman, effective January 1, 2024. Pick, co-president of MS, had led the bank’s Institutional Securities group, including investment banking and trading units. A slump in deal-making activity and lower trading volumes has impacted several banks’ investment banking and trading businesses. Thus, picking Pick as the CEO puts MS in the right hands for the coming years, when the markets are expected to recover from the lull. Pick will also take a seat on the board of directors.
Importantly, Gorman will become the executive chairman of Morgan Stanley’s board and help in a smooth transition. Pick was a natural choice for candidature for the succession race after Gorman announced his retirement in May. Pick has served in several departments for MS for the last three decades and was also instrumental in helping the bank overcome the 2008 financial crisis. He also demonstrated his capabilities with the effective turnaround at Morgan Stanley’s equities division and fixed-income business.
What is MS’s Price Target?
Following the CEO news, research firm KBW assigned a Buy rating to MS stock with a price target of $94 (31.7% upside). Overall, analysts remain cautiously optimistic about Morgan Stanley’s stock. On TipRanks, MS has a Moderate Buy consensus rating based on 13 Buys and eight Hold ratings. The average Morgan Stanley price target of $91.53 implies 28.2% upside potential from current levels.
Year-to-date, MS stock has lost 14.5%.
