Morgan Stanley maintains a wider than normal bull versus bear case skew given potential uncertainties from the outcome of the recently-concluded US presidential election. The bank has a bull case of 7,400 and a bear case of 4,600.
Morgan Stanley analysts Michael Wilson, Andrew Pauker, Michelle Weaver, Diane Ding and Nicholas Lentini have raised their base case 12-month S&P 500 price target to 6,500, forecasting a 21.5 times price-to-earnings (P/E) ratio multiple on 12-month forward earnings per share (EPS) of US$303 ($406), in their 2025 US equities outlook released on Nov 18.
A healthy mix of mid-single-digit revenue growth and margin expansion drives Morgan Stanley’s 2025 and 2026 EPS growth forecasts of 13% and 12%, respectively.
