Morgan Stanley (MS) is expected to reward shareholders with share repurchases and increased dividends, given its strong excess capital position, RBC Capital Markets said in a note emailed Monday.
The brokerage also added that the capital position could result in the company returning up to 100% of its earnings, after a strong Q2.
RBC said Q2 results were driven on the back of growth engines including Institutional Securities, Wealth Management and Investment Management.
Morgan Stanley reported net revenue of $21.35 billion, up 27% from a year earlier and EPS of $3.46, up 62% from a year earlier, which was also above RBC's estimate of $3.20.
RBC maintained its sector perform rating and increased the price target to $243 from $207.
Price: $211.26, Change: $-4.24, Percent Change: -1.97%