Morgan Stanley: I'm Moving To The Sidelines Despite A Solid Q2 (Downgrade)

Morgan Stanley delivered robust Q2 results, with EPS up 63% YoY and tangible book value per share rising to $53.18. Total revenue reached $21.35B, up 4% QoQ, while operating expenses grew just 3%, supporting margin expansion. Trading revenue was flat sequentially but surged 42% YoY; dividend was increased by 15% to $1.15 per share.

I am downgrading MS to Hold due to valuation concerns, seeking a re-entry at $165-175 (13x forward earnings).

I was looking forward to seeing the results of the second quarter , as this is the first full quarter since the war in Iran started, and the higher oil price had an impact on