Stock Update (NYSE:MS): US regulators reissue letter on Morgan Stanley’s ‘living will’

[Reuters] – The U.S. Federal Reserve and the Federal Deposit Insurance Corporation said on Friday they had reissued their letter from earlier in the week to Morgan Stanley about the bank’s “living will,” or plan for a bankruptcy that would not rely on federal aid, because of a technical error. “The feedback letter for Morgan Stanley has been re-issued due to a drafting error that labeled a weakness as a deficiency, rather than a shortcoming,” said Federal Reserve spokesman Eric Kollig. Read more on this. Morgan Stanley (MS) , with a current value of $49.96B, began trading this morning at $26.31. During the trading session, MS traded between $25.71 to $26.37 and has traded between $21.16 and $41.04 over the past 12 months. Morgan Stanley (MS) shares are currently priced at 11.25x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 11.48x earnings multiple for the same period. And for those looking to make a return holding the stock, the company pays shareholders $0.60 per share annually in dividends, yielding 2.29%. In a review of the consensus earnings estimate this quarter, 24 sell-side analysts are looking at $0.46 per share, which would be $0.39 worse than the year-ago quarter and a $0.43 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $2.30 would be a $0.40 setback when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $7.97 Billion. If realized, that would be a 18.51% decrease over the year-ago quarter. Recently, Portales Partners upgraded MS from Underperform to Sector Perform (Feb 16, 2016). Previously, JP Morgan upgraded MS from Neutral to Overweight. Given all the information above, we should disclose to readers that the average price target is $32.39, which is 23.11% above than it opened this morning. See more in (NYSE:MS) Similar Articles: Company Update: Morgan Stanley (NYSE:MS) – LPC: Morgan Stanley tops first quarter U.S. CLO league tables Stock Update: Morgan Stanley (NYSE:MS) – California sues Morgan Stanley over mortgage losses Stock Update: Morgan Stanley (NYSE:MS) – Sell the recent equity rally, says Morgan Stanley