Morgan Stanley Rises 0.6% Amid 204th Volume Rankings as Analysts Split on LSEG and Semrush Moves

On August 6, 2025, Morgan Stanley (MS) rose 0.60% despite a 29.04% drop in trading volume to $0.53 billion, ranking 204th among stocks. Analyst activity highlighted divergent views on its market influence and sector positioning.

The firm upgraded London Stock Exchange Group (LSEG) to Top Pick, citing undemanding valuations and growth potential in data-driven services. While lowering its price target to 12,200p, Morgan Stanley emphasized LSEG’s 22.5x 2026 earnings multiple as a compelling contrast to U.S. peers averaging 31x. The bank also acknowledged risks from AI disruption but argued LSEG’s proprietary data assets position it to capitalize on AI-related demand.

Conversely, Morgan Stanley downgraded Semrush Holdings to Equal-Weight, citing slowing growth in small-business and freelancer segments. The firm noted a 140-basis-point reduction in full-year revenue guidance and concerns that AI adoption could erode demand for traditional SEO services. A revised $9 price target reflected muted near-term catalysts and uncertainty around customer retention.

Zacks Equity Research highlighted Morgan Stanley’s outperformance in the financial sector over the past year, driven by a strong Q2 trading performance and strategic focus on wealth management. Analysts projected 3.9% growth in investment banking fees and 3.6% total revenue growth for 2025, though elevated expenses and capital markets volatility remain near-term risks. The firm’s valuation remains supported by a robust balance sheet and long-term digital transformation initiatives.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores liquidity concentration’s role in short-term gains, particularly in volatile markets, where high-volume stocks often exhibit greater price momentum.