11:47 AM EDT, 07/17/2024 (MT Newswires) -- Morgan Stanley ( MS ) reported solid Q2 quarter but the stock is currently fairly valued after exceeding the price target, Oppenheimer said in a note.

"The stock has traded through our $102 target price, and our valuation model on our new estimates indicates the stock is roughly fairly valued at current levels," Oppenheimer analysts Chris Kotowski and Kevin Tripp said.

"We are still believers that the investment banking recovery has room to run, but see GS and JEF as much better positioned to benefit relative to MS," they said. GS refers to Goldman Sachs and JEF to Jefferies.

The analysts said Morgan Stanley ( MS ) posted "very solid" Q2 EPS of $1.82, above Oppenheimer's estimate of $1.58 and the consensus forecast of $1.65, backed by strong revenue.

They said the beat was driven by the institutional group, which posted trading revenue of $5 billion, above Oppenheimer's $4.5 billion estimate. Also, investment banking revenue rose 51%, "comfortably" beating Oppenheimer's estimate.

"The capital markets rebound that we have been looking for seems to be materializing, and we still think we have a long

way to go to full normalization," the analysts said. Oppenheimer downgraded the stock to perform rating.

Price: 106.60, Change: +0.38, Percent Change: +0.36