Morgan Stanley Reaffirms Top Pick Amid 3Q26 Earnings

By EC Assets · Published 14 October 2026

Morgan Stanley reaffirmed Wells Fargo & Co. as its top pick following the bank's third-quarter 2026 earnings report. This decision came despite Wells Fargo's modest earnings miss. The investment bank also slightly reduced Wells Fargo's price target to $101 from $102. Morgan Stanley itself reported adjusted third-quarter earnings that surpassed analysts' estimates. Strong performance from its investment bank and wealth management units contributed to this beat. The company posted earnings per share. Morgan Stanley's stock slipped after the company beat third-quarter profit estimates on Wednesday, October 14. Equities trading revenue beat expectations by $909 million. The headline numbers for Morgan Stanley provide insight into its performance for the quarter ended September 2026. Goldman Sachs and Morgan Stanley are among financial stocks reporting earnings this week. Analysts hiked estimates for these companies in recent months. Morgan Stanley's equities trading surpassed expectations. Morgan Stanley strategists noted a steep drop in U.S. stock valuations since early summer. This has made some market areas attractive, as earnings growth shows few signs of waning. Third-quarter earnings growth is anticipated to be driven by energy and semiconductor companies. However, HSBC envisions a stock market broadening out. Bank of America's stock fell due to investor disappointment over a $1.2 billion government fine and a downbeat earnings report. Investors will monitor further earnings reports from financial institutions. Wealth management trends and analyst targets will shape future movements. This article is intended for informational purposes only. It does not constitute investment advice.