Credit Suisse to raise Morgan Stanley earnings forecasts

Howard Chen, the Swiss credit analyst, raised his earnings forecasts for Morgan Stanley (MS) in Beijing time, May 19 Evening News.　　Not long ago, the analyst negotiated with the bank's management on how to improve the company's operations. The analyst raised JPMorgan's target share price from 26 to $28 and kept the company's stock rating "neutral".　　Earlier, he met with Morgan Stanley's chief financial officer, Colm-Coral (Colm Kelleher).　　Chen said that through the meeting, he learned that market conditions are gradually returning to stability, but has not yet returned to the credit crunch and the normal level before the start of the recession. In a study, Chen pointed out that the company's performance was very strong in 4 May this year, but some recent factors may still have a negative impact on its earnings performance.　　Some of the bank's traditional assets, such as commercial real estate and capital investment, could still be lost and could offset the gains from narrowing the spreads to more reasonable levels. Chen pointed out that in the first one months of the second quarter, the bank's core business has improved.　　The customer flow, the loss ratio and the new stock issue transaction and other indicators have been improved.　　The analyst raised Morgan Stanley's earnings forecast for the second quarter from 15 cents to 40 cents, raising earnings per share for the year from 95 cents to $1.　　Analysts polled by Thomson Reuters on average expect the company to make 29 cents a share in the second quarter, earning 84 cents a share a year. In the long run, Morgan Stanley is pushing ahead with Citigroup's plan to set up a retail brokerage joint venture. Earlier this year, Morgan Stanley acquired the majority stake in the Citi retail brokerage Smith Barney.　　Chen pointed out that how to integrate the operations of the two companies and retain high-end talent is a priority for the deal to solve the core issues.　　Chen pointed out that the deal will not only enable Morgan Stanley to diversify revenue channels, but also to expand its banking and brokerage sector strength. The bank is also ready to repay the $10 billion trillion of bailout money it borrowed from the US government last fall. When the credit crunch intensified, the U.S. government provided loan aid to a number of banks.