Morgan Stanley Drops 3.28% as Bank Stocks Weaken

On April 4, 2025, Morgan Stanley's stock experienced a significant drop of 3.28% in pre-market trading, reflecting a broader trend of weakness in the banking sector.

Morgan Stanley's stock decline can be attributed to several factors, including a downgrade in its rating by Evercore ISI, which reduced the price target from $150.00 to $138.00 while maintaining an "outperform" rating. Additionally, JPMorgan lowered its price target for Morgan Stanley from $129 to $125, citing adjusted forecasts and maintaining a neutral rating.

The broader economic environment also played a role in the stock's performance. Concerns over slower economic growth and credit stress have led to a selling spree in banking stocks. Furthermore, the potential impact of tariffs on dealmaking and the overall economic outlook has added to the uncertainty, contributing to the stock's decline.

Despite these challenges, some analysts remain optimistic about Morgan Stanley's prospects. Barclays analyst Jason Goldberg maintained a Buy rating on the stock and set a price target of $156.00, highlighting the company's strengths in wealth management and investment banking.